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Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Galapagos (AS:GLPG) NV (NASDAQ:GLPG), currently trading at $30.20 with a market cap of $1.97 billion, following the company’s financial results and corporate update released Wednesday evening after market close. According to InvestingPro data, the stock has gained 21.05% year-to-date.
Galapagos reported second-quarter 2025 earnings per share of €(1.60), significantly below Raymond James’ estimate of €(0.22). The firm attributed this difference primarily to expenditures related to severance costs, impairment on fixed assets, and early termination of collaboration agreements.
The company ended the second quarter with €3.1 billion in cash and cash equivalents, which Raymond James noted is "a hefty bank account investors are eager to see judiciously deployed." Galapagos plans to provide a new cash outlook during its third-quarter 2025 results.
Galapagos is undergoing a significant transformation with new management, including CEO Henry Gosebruch and recently hired CFO Aaron Cox, who are leading efforts to leverage the company’s cash balance for acquisitions and licensing opportunities. The company decided against spinning off its business development efforts into a separate entity.
While cell therapy programs remain ongoing, Raymond James anticipates the new pipeline will move away from cell therapy, noting that their "confidence is building on the execution of the new leadership team" but maintaining the Market Perform rating as they await further updates on the direction of the pipeline.
In other recent news, Galapagos NV has made significant announcements regarding its corporate strategy and leadership. The company decided to abandon its previous plan to split into two separate entities, opting instead to continue as a single entity focused on mergers and acquisitions. This strategic change comes amid leadership transitions, with Henry Gosebruch taking over as CEO from Paul Stoffels and Jérôme Contamine being appointed as the new board Chair. These developments were accompanied by the company’s first-quarter financial results, which revealed a quarterly earnings per share loss of €(2.33), falling short of Raymond James’ estimate of €(0.28). The shortfall was attributed to severance costs, asset impairments, and the early termination of collaboration agreements. Despite the earnings miss, Galapagos ended the quarter with €3.3 billion in cash and cash equivalents, with a significant portion reserved for the previously planned SpinCo. Raymond James has maintained its Market Perform rating on Galapagos following these announcements. Further details on the company’s strategic direction are anticipated as it navigates its transitional phase.
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