Galapagos (GLPG) AI Stock Analysis

• Market Cap: $2.46B
• Dividend Yield: N/A
• Average Volume (3M): 191.81K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 704
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.85
• Shares Outstanding: 65,897,070
• 10 Day Avg. Volume: 241,074
• 30 Day Avg. Volume: 191,815
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.73
• Enterprise Value/Revenue: -6.53
• Enterprise Value/Gross Profit: -12.48
• Enterprise Value/Ebitda: 4.97
• 1Y Price Target: $26.00
• Price Target Upside: -30.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $38.00 ▲(1.01% Upside)

Galapagos' overall stock score is primarily impacted by its financial performance, which is currently weak due to significant profitability and cash flow challenges. The technical analysis provides some positive momentum, but the overbought conditions suggest caution. The valuation is unattractive due to negative earnings and lack of dividends. These factors collectively result in a moderate overall score.

Positive Factors

Strong Cash Position

A robust cash position provides Galapagos with the financial flexibility to invest in R&D, pursue strategic acquisitions, and weather financial challenges, supporting long-term growth and stability.

FDA RMAT Designation

The RMAT designation facilitates accelerated development and regulatory support, enhancing Galapagos' competitive edge in the biotechnology sector and potentially leading to faster market entry for innovative treatments.

Leadership Strengthening

Strengthening leadership with experienced executives can drive strategic transformation, improve operational efficiency, and enhance shareholder value, positioning Galapagos for long-term success.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates operational inefficiencies and financial strain, potentially limiting Galapagos' ability to fund R&D and growth initiatives without external financing.

Profitability Challenges

Significant profitability challenges highlight the need for strategic shifts to achieve sustainable operations, impacting Galapagos' ability to generate shareholder returns and invest in future growth.

Strategic Uncertainty

Exploring strategic alternatives for the cell therapy business introduces uncertainty, potentially affecting long-term strategic focus and resource allocation, impacting Galapagos' market positioning.

Galapagos Business Overview & Revenue Model

Company Description

Galapagos NV, an integrated biopharmaceutical company, engages in the discovery, development, and commercialization of various medicines for high unmet medical need. Its pipeline products include filgotinib, a JAK1 inhibitor that is in various phases of clinical trials for the treatment of rheumatoid arthritis, Crohn's disease, ulcerative colitis, small bowel CD, fistulizing CD, ankylosing spondylitis, psoriatic arthritis, and uveitis. The company's pipeline products also comprise GLPG1972 that has completed Phase 2b trial for treating osteoarthritis; Toledo molecules, including GLPG3970, GLPG4399, and GLPG4876 for inflammation; and GLPG4716 and Ziritaxestat to treat idiopathic pulmonary fibrosis. In addition, its other pipeline products include GLPG2737, a cystic fibrosis transmembrane conductance regulator that is in Phase 2 clinical trials to treat patients with autosomal dominant polycystic kidney disease; and GLPG0555, a JAK1 inhibitor, which is in Phase 1b for treatment of patients with osteoarthritis. The company has collaboration agreements with Gilead Sciences, Inc.; AbbVie S.à r.l.; and Novartis Pharma AG. Galapagos NV was incorporated in 1999 and is headquartered in Mechelen, Belgium.

How the Company Makes Money

Galapagos generates revenue primarily through the development and commercialization of its pharmaceuticals. The company earns money from several key revenue streams: milestone payments from partnerships with larger pharmaceutical companies, royalties from sales of partnered products, and potentially revenue from its own marketed products once they are approved. Significant partnerships, such as those with Gilead Sciences, contribute to Galapagos's earnings through upfront payments and success-based milestones as products progress through clinical trials. Additionally, grants and collaborations with academic institutions may also supplement its income.

Galapagos Financial Statement Overview

Summary

Galapagos faces significant financial challenges, including negative profitability and cash flow issues. Despite a strong balance sheet with low leverage, the company struggles with operating losses and cash burn, posing a substantial risk to its financial stability.

Income Statement

The income statement reveals significant challenges for Galapagos, with declining revenues and negative profitability metrics. The TTM gross profit margin is approximately 52.34%, indicating some level of cost control. However, the net profit margin is deeply negative at -103.14% for TTM, highlighting the company's struggle to generate profit. Revenue has seen a slight decline from the previous annual period, and the company has operated at a loss with negative EBIT and EBITDA margins. These figures suggest financial distress and a need for strategic shifts to achieve profitability.

Balance Sheet

Galapagos maintains a strong equity position, with a debt-to-equity ratio of 0.0032, reflecting minimal reliance on debt. The equity ratio stands at 69.23%, indicating that a significant portion of the company’s assets is financed by equity. The return on equity is negative due to the net losses. The low leverage is a positive aspect, providing financial stability and reducing risk, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

Cash flow analysis shows negative free cash flow of -297.68 million in TTM, highlighting cash burn issues. Although investing cash flow is positive, largely due to divestments, operating cash flow remains negative. The operating cash flow to net income ratio is negative due to losses, suggesting inefficiencies in core operations. The cash flow situation is concerning and requires attention to ensure long-term liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.61M	275.65M	239.72M	505.28M	484.85M	478.05M
Gross Profit	144.23M	-94.67M	203.74M	493.20M	483.22M	-45.61M
EBITDA	-362.14M	-152.94M	51.04M	-33.37M	-100.93M	-294.52M
Net Income	-284.27M	74.08M	211.70M	-217.99M	-125.42M	-311.00M
Balance Sheet
Total Assets	3.82B	4.14B	4.36B	4.73B	5.19B	5.72B
Cash, Cash Equivalents and Short-Term Investments	3.09B	3.12B	3.68B	4.09B	4.70B	5.16B
Total Debt	8.44M	11.72M	9.60M	21.90M	26.86M	29.44M
Total Liabilities	1.17B	1.24B	1.56B	2.21B	2.55B	3.05B
Stockholders Equity	2.64B	2.90B	2.80B	2.53B	2.64B	2.67B
Cash Flow
Free Cash Flow	-297.68M	-402.14M	-425.24M	-537.49M	-561.71M	-518.65M
Operating Cash Flow	-278.55M	-320.03M	-405.97M	-500.54M	-503.83M	-427.34M
Investing Cash Flow	284.37M	220.60M	71.19M	-1.25B	541.24M	757.29M
Financing Cash Flow	-4.30M	-4.92M	-5.00M	-1.49M	-3.88M	22.04M

Galapagos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPG, the sentiment is Positive. The current price of 37.62 is above the 20-day moving average (MA) of 33.55, above the 50-day MA of 32.82, and above the 200-day MA of 28.16, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 75.30 is Negative, neither overbought nor oversold. The STOCH value of 92.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLPG.

Galapagos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGIO	64 Neutral	$2.35B	3.67	64.05%	―	30.57%	―
TARS	59 Neutral	$2.75B	―	-31.46%	―	254.45%	48.06%
GLPG	54 Neutral	$2.46B	21.22	-10.10%	―	―	―
RXRX	52 Neutral	$2.39B	―	-86.34%	―	30.14%	-10.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TVTX	49 Neutral	$2.20B	―	-705.73%	―	87.94%	57.84%
IRON	43 Neutral	$2.36B	―	-26.36%	―	―	-22.19%

Galapagos Corporate Events

Galapagos Updates on Cell Therapy Business Strategic Review

On October 1, 2025, Galapagos NV announced an update on its strategic review of alternatives for its cell therapy business, initially disclosed on May 13, 2025. The company has received a limited number of non-binding offers from financial consortia interested in acquiring the business. Galapagos is working with these potential bidders to finalize due diligence and secure financing commitments. The deadline for binding offers is approaching, and a decision regarding the divestment or alternative actions is expected by November 5, 2025.

Galapagos NV Launches New Subscription Right Plan for Management

On August 7, 2025, Galapagos NV announced the creation of 1,800,000 subscription rights under a new plan approved by its Board of Directors. This initiative, known as ‘Subscription Right Plan 2025 (B)’, is aimed at compensating senior management and involves an exercise term of eight years with a price of €28.16 per right. The plan is part of Galapagos’ strategy to enhance its market positioning and incentivize its workforce, potentially impacting the company’s share capital and voting rights structure.

Galapagos NV Secures FDA RMAT Designation for GLPG5101

On August 6, 2025, Galapagos NV announced that the U.S. FDA granted RMAT designation to its GLPG5101, a second-generation CAR-T product candidate, for treating relapsed/refractory mantle cell lymphoma. This designation, supported by promising clinical data from the ATALANTA-1 study, allows for accelerated development and closer collaboration with the FDA, potentially enhancing Galapagos’ position in the biotechnology industry and offering new treatment options for patients.

Galapagos NV Reports Strong H1 2025 Results Amid Strategic Transformation

On July 23, 2025, Galapagos NV announced its unaudited financial results for the first half of 2025, highlighting a strong cash position of €3.1 billion. The company is undergoing significant leadership changes with the appointment of a new CEO, CFO, and other key executives to drive its strategic transformation. Galapagos is evaluating strategic alternatives for its cell therapy business, including a potential divestiture, and has established Galapagos Cell Therapeutics as a standalone entity. The company is also advancing its CAR-T programs, with promising clinical data presented for GLPG5101 in non-Hodgkin lymphoma. Additionally, Galapagos has transferred certain small molecule programs to Onco3R Therapeutics and is exploring partnerships for its TYK2 inhibitor, GLPG3667.

Galapagos Strengthens Leadership with New Executive Appointments

On July 23, 2025, Galapagos NV announced the appointment of Sooin Kwon as Chief Business Officer and Dan Grossman as Chief Strategy Officer, effective August 4, 2025. These appointments aim to strengthen the company’s leadership team to drive its transformation and enhance shareholder value. Both executives bring extensive experience in strategic execution and deal-making, which is expected to advance Galapagos’ business development and strategic plans, ultimately benefiting both patients and shareholders.

Galapagos Appoints New Directors to Strengthen Board

On July 23, 2025, Galapagos NV announced the appointment of Dawn Svoronos and Jane Griffiths as Non-Executive Independent Directors, effective July 28, 2025. They will replace Peter Guenter and Simon Sturge, who are stepping down. The new directors bring extensive experience in commercial strategy and corporate governance, which is expected to strengthen Galapagos’ board and support its ongoing transformation and innovation efforts. This move underscores the company’s commitment to long-term value creation and enhancing its leadership capabilities.