Belgian biotechnology company Galapagos NV (Euronext Brussels:GLPG) (NASDAQ:GLPG) on Tuesday announced its intention to wind down its cell therapy business following a comprehensive strategic review, concluding that reallocating capital to new business development opportunities represents the optimal path for long-term sustainability.

This decision follows a review of divestiture options, during which the company received no viable proposals with sufficient financing or terms to support the business's future.

The move is designed to enhance operational efficiency and refocus resources on building a pipeline of novel therapeutics through transformational business development transactions under new leadership. The board of directors unanimously approved the plan, with Gilead-appointed directors recusing themselves from the vote.

If implemented, the wind-down is expected to affect approximately 365 employees across Europe, the USA, and China, resulting in the closure of sites in Leiden, Basel, Princeton, Pittsburgh, and Shanghai. Galapagos anticipates incurring EUR100-125m in operating costs from Q4 2025 through 2026 and EUR150-200m in one-time restructuring expenses next year.

The company will continue to operate its non-cell therapy activities from its headquarters in Mechelen, Belgium.