Galapagos provides update on separation, CEO change

Galapagos (GLPG) provided a strategic update on the proposed separation, executive leadership transition and changes to its board of directors. On January 8, Galapagos announced its intention to separate into two publicly traded entities with Galapagos to advance novel cell therapies and SpinCo, a new biotechnology company focused on building a pipeline of medicines through transactions. This planned separation, subject to shareholder approval and other customary conditions, was expected by mid-2025. Since this initial announcement, the company has made significant progress in reorganizing its business towards the separation. However, following regulatory and market developments, the Galapagos board of directors has decided to re-evaluate the previously proposed separation and will explore all strategic alternatives for its existing businesses, including cell therapy, with a focus on maximizing resources available for transformative business development transactions. As part of this strategic update, the board of directors has appointed Henry Gosebruch as CEO of Galapagos and executive director of the board by way of co-optation, replacing Paul Stoffels, effective immediately. On April 21, Galapagos announced that its board of directors appointed Henry Gosebruch as founding CEO of SpinCo as well as the retirement of Paul Stoffels as CEO of Galapagos. In this expanded role, Gosebruch will now lead the strategic evaluation process for Galapagos’ current business, and in parallel. Jerome Contamine, member of the Galapagos board of directors since April 26, 2022, and chair of the audit committee and lead non-executive director, has been appointed chair of the board of directors of Galapagos. Paul Stoffels will remain with the company in an advisory capacity and assist in the evaluation of strategic options for the cell therapy pipeline assets under development at Galapagos, including its flagship program, GLPG5101, and its decentralized cell therapy manufacturing platform. In connection with this appointment, the company will issue new restricted stock units and subscription rights.