Galapagos Stock Rises After Hours On Starting To Wind Down Cell Therapy Activities, Subsequent Workforce Reduction

• The winding down of the said activities will impact about 365 employees across regions including Europe, the U.S. and China, the company said. 
• It will also result in the shut down of sites in the Netherlands, Switzerland, U.S. and China.
• Galapagos CFO Aaron Cox had said in November that the company expects to be cash flow neutral to positive by the end of 2026 if the wind down is implemented.

Galapagos NV (GLPG) on Monday announced that its Board of Directors has decided to initiate the wind-down of the company’s cell therapy activities, sending shares up 6% in Monday’s after hours trading.

The company had announced its intent to wind down the activities after a strategic review and sale process in October but had held on acting on it until it completed communicating with work councils in the Belgium and Netherlands. The winding down of the said activities will impact about 365 employees across regions including Europe, the U.S. and China, the company said.

It will also result in the shut down of sites in the Netherlands, Switzerland, the U.S. and China. The U.S. facilities to be shut down include one in Princeton and another in Pittsburgh, the company said. More details about the wind down, including details pertaining to its timeline and costs, will be provided with the company’s full year earnings in February, it added.

Galapagos CFO Aaron Cox had said in November that the company expects to be cash flow neutral to positive by the end of 2026 if the wind down is implemented.

Future After Wind Down

On Monday, Galapagos said that the wind-down of the cell therapy activities will position it for longer-term growth. The company will continue to manage its non-cell therapy programs and evaluate all strategic alternatives for GLPG3667, an investigational, oral, selective inhibitor of tyrosine kinase 2, to accelerate its development in dermatomyositis and potentially other severe auto-immune indications, the company said.

The company will also consider resuming the partnering process for the drug, it said. Galapagos also added that it will continue to maintain its presence at its headquarters in Belgium as well as its hubs in Chicago and San Francisco.

How Did Stocktwits Users React?

On Stocktwits, the retail sentiment about GLPG stayed in the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

GLPG stock has gained 15% over the past 12 months. 

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