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Investing.com -- Galapagos stock fell 15% after the biotechnology company announced it would wind down its cell therapy business following unsuccessful attempts to find a buyer for the unit.
The company’s board unanimously approved the plan to shut down the cell therapy operations after several interested parties, including a financial consortium led by former CEO Paul Stoffels, failed to provide fully financed offers. Notably, the two Gilead-appointed directors recused themselves from the vote.
Gilead, a leader in CAR-T cell therapy and a long-standing partner of Galapagos , chose not to engage further in the process. This lack of interest from Gilead and other industrial players suggests the cell therapy platform faced significant challenges in becoming a sustainable business.
Kepler analysts commented on the development: "While disappointing on paper, the decision brings an end to months of uncertainty and confirms a pragmatic capital allocation choice for a programme that we had long viewed as economically unviable."
The decision comes after what appears to have been an extensive search for potential buyers, with the company ultimately determining that winding down the business was the most prudent course of action for its overall strategy and resource allocation.
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