Galapagos Reverses Course on Company Split, Reevaluates Strategic Direction

Belgian biotech firm Galapagos NV has announced a sudden change in its strategic plans, halting its previously announced intention to split the company into two separate entities. This unexpected development comes just five months after the initial split proposal and signals a significant shift in the company's direction under new leadership.

Abrupt Change in Plans

Galapagos revealed on May 13, 2025, that it would "re-evaluate" its plan to separate into two distinct companies, citing "regulatory and market developments" as the primary reason for the reconsideration. The original plan, announced in January, would have divided the company into two parts: one retaining the Galapagos name and focusing on cell therapies, and another unnamed entity dedicated to building an innovative medicine pipeline through strategic transactions.

The separation, initially slated for mid-2025, has now been put on hold. Despite making "significant progress" in reorganizing the business for the split, Galapagos has decided to pause and reassess its strategy in light of what it calls "general market regulation conditions."

Leadership Transition and Strategic Evaluation

Coinciding with this strategic shift, Galapagos announced an immediate change in leadership. CEO Paul Stoffels, M.D., who had previously announced his upcoming retirement, will be replaced by Henry Gosebruch, effective immediately. Gosebruch, originally slated to become CEO of the unnamed split-off entity, will now oversee the undivided company and lead a comprehensive strategic evaluation process.

In his new role, Gosebruch stated, "We are currently evaluating strategic options regarding our clinical programs and other assets." He emphasized his intention to explore various alternatives for the cell therapy business, including potential mergers, divestures, and out-licensing opportunities. Simultaneously, the company plans to pursue "transformative business development opportunities" to build an innovative pipeline aimed at delivering differentiated medicines for patients.

Impact on Partnerships and Workforce

The reversal of the split decision has implications for Galapagos' existing partnerships and workforce. The original plan involved Gilead Sciences, a long-term collaborator since 2019, agreeing to return full development and commercialization rights to Galapagos' pipeline. It remains unclear how this change will affect the relationship between the two companies.

Furthermore, the reorganization associated with the split was expected to result in significant job losses, with approximately 300 employees—40% of Galapagos' workforce—facing layoffs. The company has confirmed that these layoffs are already "well-advanced," despite the change in plans. This reduction includes "meaningful reductions" in staff in Belgium, the company's home territory, and the closure of its site in France.