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Investing.com -- Galapagos (NASDAQ:GLPG) has put a halt to its previously announced corporate separation plans, opting instead to explore various strategic alternatives for its business units, including its cell therapy division. This decision comes in response to recent regulatory and market developments.
Shares in the company rose 3.5% in today’s Amsterdam trading session.
The company had initially announced the separation into two independent, publicly traded entities by mid-2025. These entities were to be Galapagos, with a focus on cell therapy, and SpinCo, a new biotech entity driven by business development (BD). However, this plan is now on hold as the Board of Directors re-evaluates strategic options across the portfolio.
In addition to these strategic changes, there has also been a leadership transition within the company. Henry Gosebruch, who was initially appointed as the CEO-designate of SpinCo, will now serve as the CEO of Galapagos. His responsibilities will include conducting the strategic evaluation and executing transformative business development transactions.
In conjunction with Gosebruch’s appointment, Jérôme Contamine, previously the Lead Non-Executive Director, has been named Chair of the Board of Directors. Meanwhile, Dr. Stoffels will continue to provide advisory support for the strategic review of the cell therapy pipeline.
With a strong balance sheet and available cash, the management is aiming to build an innovative pipeline. This suggests a shift from internal research and development to externally sourced assets.
The future of GLPG5101 and Galapagos’ decentralized manufacturing platform is also under active review. Possible outcomes for these aspects of the business include mergers, divestitures, or out-licensing.
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