Galapagos Winds Down Cell Therapy Business, Cuts 365 Jobs Amid Industry Shifts

Galapagos NV, a Belgian biotechnology company, has announced plans to wind down its cell therapy business after failing to secure viable offers for the unit. This strategic shift comes amid broader changes in the cell therapy landscape, with other major pharmaceutical companies also retreating from the field.

Galapagos Exits Cell Therapy, Initiates Restructuring

Galapagos CEO Henry Gosebruch revealed that the company had conducted a thorough search for potential buyers of its cell therapy unit but received no viable proposals. As a result, Galapagos will shut down its cell therapy operations and reallocate resources to other areas of unmet medical need.

The wind-down process will result in approximately 365 job cuts across Europe, the United States, and China. Galapagos plans to close multiple sites, including facilities in the Netherlands, Switzerland, and China, as well as locations in Pittsburgh and Princeton, New Jersey.

The company estimates one-time restructuring costs of €150 million to €200 million ($174 million to $232 million) in 2026, with additional operating costs of €100 million to €125 million ($116 million to $145 million) from Q4 2025 through 2026.

Industry-wide Shift in Cell Therapy Focus

Galapagos' decision to exit cell therapy aligns with recent moves by other pharmaceutical giants. Earlier this month, Novo Nordisk announced it would no longer invest in cell therapy, terminating related programs, including one for type 1 diabetes. Takeda made a similar decision shortly before, collectively resulting in nearly 400 layoffs between the two companies.

These developments signal a potential shift in the broader cell therapy landscape, with major players reassessing their investments in this once-promising field.

Galapagos' Strategic Pivot and Future Plans

The cell therapy exit marks a significant change in Galapagos' strategy, following a series of announcements and reversals over the past year. In January, the company had initially planned to split into two entities, with one focused on cell therapies. This plan was abandoned in May, leading to the exploration of strategic alternatives for the cell therapy business.

With the wind-down of its cell therapy operations, Galapagos will now focus on building a pipeline of new medicines through deals and acquisitions. The company retains a substantial cash position, with €3.1 billion ($3.6 billion) in cash and investments as of June 2025.

Galapagos plans to provide an updated cash outlook when it reports third-quarter results on November 6, 2025. The company's shares were down 11% in premarket trading following the announcement.