Galapagos will consolidate its cell therapy activities under a new standalone entity — Galapagos Cell Therapeutics — as the company looks to maximize value while exploring strategic alternatives for its cell therapy business.
The Belgium-based biotech started the year by slashing its workforce by 40% and announcing a planned separation into two companies: one focused on building a pipeline of innovative medicines through strategic transactions and one that would advance the company’s cell therapy candidates in oncology. By May, the Galapagos board of directors had decided to re-evaluate the proposed separation and began exploring other options for its existing businesses.
Galapagos says it has also entered into a cell therapy royalty and waiver agreement with Gilead, giving Galapagos full global development and commercialization rights to its cell therapy business. The companies had inked a 10-year global option, license and collaboration agreement in 2019.
“We have commenced a bold new chapter in our transformation journey,” said Henry Gosebruch, Galapagos’ CEO. “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’ lead cell therapy, GLPG5101, is a CD-19 CAR-T cell therapy being evaluated in multiple relapsed/refractory B-cell malignancies.
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