After ditching a plan to split into two distinct companies, Belgian biotech Galapagos is trimming its pipeline and consolidating cell therapies to prep the business unit for a potential sale.
Galapagos has secured global development and commercialization rights for its cell therapies back from Gilead Sciences, the company said in a July 23 release, after the two originally inked a 10-year partnership in 2019. Gilead gave Galapagos close to $4 billion upfront for that deal. In return for getting its cell therapy business back, Galapagos owes Gilead a single-digit royalty payment on proceeds that come from sales of an approved cell therapy product or from selling off the cell therapy business.
The secured cell therapies now sit in a subsidiary within Galapagos called Galapagos Cell Therapeutics, with their fate to be determined by a strategic review. Galapagos said it plans to provide an update on this review in the third quarter of 2025.
In addition to regaining its cell therapies, Galapagos wants to move on from some of its small molecules. The company has transferred undisclosed small-molecule programs in immunology and oncology to fellow Belgian biotech Onco3R Therapeutics in return for equity and potential milestone payments.
The company’s TYK2 inhibitor GLPG3667 sits on the chopping block as well. Galapagos is “actively exploring partnership opportunities” for the small molecule, which is currently in phase 2 trials for systemic lupus erythematosus and dermatomyositis, according to the biotech’s website.
“We have commenced a bold new chapter in our transformation journey,” Henry Gosebruch, Galapagos’ newly minted CEO, said in the release. “Our priorities are clear: pursue and execute on transformational transactions to build a pipeline of innovative clinical programs and maximize the cash available for this new business development activity, all with the goal of delivering meaningful impact to patients."
Galapagos announced plans to split into two entities back in January, announcing the end of the Gilead partnership and laying off 40% of its staff in preparation. One company was to keep the Galapagos name and a portfolio of cell therapies, while the other would be expected to build a new pipeline using “transformational transactions,” the company said.
“General market regulation conditions” led the company to renege on this plan in May, Galapagos said at the time.