tiprankstipranks
Trending News
More News >
Galapagos (GLPG)
NASDAQ:GLPG
Advertisement

Galapagos (GLPG) AI Stock Analysis

Compare
547 Followers

Top Page

GLPG

Galapagos

(NASDAQ:GLPG)

Select Model
Select Model
Select Model
Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
$30.00
▼(-6.13% Downside)
Galapagos faces significant financial challenges, with negative profitability and cash flow issues being the most impactful factors. The technical analysis suggests a bearish trend, with potential for a reversal. Valuation metrics are weak due to negative earnings and lack of dividends, further impacting the overall score.
Positive Factors
Strong Equity Position
A strong equity position with minimal debt reliance enhances financial stability and reduces risk, providing a solid foundation for future growth.
Strategic Leadership Changes
Leadership changes, including appointing experienced executives, can drive strategic transformation and improve operational efficiency, supporting long-term growth.
FDA RMAT Designation
The RMAT designation accelerates development and collaboration with the FDA, potentially enhancing market position and offering new treatment options.
Negative Factors
Negative Cash Flow
Negative cash flow highlights cash burn issues, which can strain liquidity and require strategic adjustments to ensure long-term financial health.
Declining Revenues
Declining revenues and negative margins indicate financial distress, necessitating strategic shifts to achieve profitability and sustain operations.
Cell Therapy Business Wind Down
Winding down the cell therapy business may lead to restructuring costs and job losses, impacting operational focus and financial resources.

Galapagos (GLPG) vs. SPDR S&P 500 ETF (SPY)

Galapagos Business Overview & Revenue Model

Company DescriptionGalapagos 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 MoneyGalapagos 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 Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with significant progress in clinical trials, strategic leadership appointments, and a strong financial position. However, restructuring costs and uncertainties related to the SpinCo separation present challenges.
Q1-2025 Updates
Positive Updates
Progress in Clinical Pipeline
Dosed first U.S. patient in the ATALANTA-1 study of GLPG5101, completed enrollment of the indolent NHL cohort, and added new cohorts. Selected MCL as a lead indication for a pivotal trial.
Innovative Manufacturing Platform
Expanded decentralized manufacturing network in the U.S. and Europe. Collaborated with AdaptImmune on developing uza-cel for solid tumors.
Financial Position
Reported a cash balance of EUR 3.3 billion at the end of Q1 2025, with plans for SpinCo to have approximately EUR 2.45 billion post-separation.
Positive Clinical Data
Achieved high overall response and complete response rates in patients receiving CD19 CAR-T cell therapy for various lymphomas with a promising safety profile.
Leadership and Strategic Developments
Announced the appointment of Henry Gosebruch as the Founding CEO of SpinCo and detailed plans for the strategic separation of SpinCo.
Negative Updates
Restructuring Costs
Incurred EUR 111 million in restructuring costs including severance costs, early termination of collaborations, and impairment on small molecule assets.
Spin-Off Uncertainties
The transition involves significant structural changes and uncertainties in execution and future performance of SpinCo.
Company Guidance
During the Galapagos Q1 2025 financial results call, the company provided comprehensive guidance and updates on its strategic initiatives and financial performance. Galapagos reported Q1 net revenues of EUR 75 million, comprising EUR 14 million from supply revenues related to Jyseleca and EUR 61 million from collaboration revenues. The company's cash balance stood at EUR 3.3 billion, with a planned cash runway extending to 2028. Galapagos detailed its innovative cell therapy pipeline, highlighting the ATALANTA-1 study, which evaluated GLPG5101, a CD19 CAR-T candidate, in eight hematological malignancies. The pivotal development for Mantle Cell Lymphoma (MCL) is slated to start in 2026, with anticipated approval in 2028. The company is focused on expanding its decentralized manufacturing units (DMUs) across the U.S. and Europe, improving the logistics and cost-effectiveness of its cell therapies. Additionally, Galapagos announced the appointment of Henry Gosebruch as the CEO of SpinCo, marking a significant step in its strategic separation plan. After the separation, SpinCo will have EUR 2.45 billion for transformative transactions, while Galapagos will retain EUR 500 million to accelerate its cell therapy pipeline. The company remains committed to advancing its R&D efforts, with a focus on oncology, immunology, and virology, and expects multiple value-driving catalysts throughout 2025.

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
35
Negative
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
65
Positive
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue275.61M275.65M239.72M505.28M484.85M478.05M
Gross Profit144.23M-94.67M203.74M493.20M483.22M-45.61M
EBITDA-362.14M-152.94M51.04M-33.37M-100.93M-294.52M
Net Income-284.27M74.08M211.70M-217.99M-125.42M-311.00M
Balance Sheet
Total Assets3.82B4.14B4.36B4.73B5.19B5.72B
Cash, Cash Equivalents and Short-Term Investments3.09B3.12B3.68B4.09B4.70B5.16B
Total Debt8.44M11.72M9.60M21.90M26.86M29.44M
Total Liabilities1.17B1.24B1.56B2.21B2.55B3.05B
Stockholders Equity2.64B2.90B2.80B2.53B2.64B2.67B
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 Flow284.37M220.60M71.19M-1.25B541.24M757.29M
Financing Cash Flow-4.30M-4.92M-5.00M-1.49M-3.88M22.04M

Galapagos Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price31.96
Price Trends
50DMA
33.13
Negative
100DMA
31.66
Positive
200DMA
28.63
Positive
Market Momentum
MACD
-0.31
Positive
RSI
40.51
Neutral
STOCH
22.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPG, the sentiment is Neutral. The current price of 31.96 is below the 20-day moving average (MA) of 34.12, below the 50-day MA of 33.13, and above the 200-day MA of 28.63, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 22.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLPG.

Galapagos Risk Analysis

Galapagos disclosed 79 risk factors in its most recent earnings report. Galapagos reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Galapagos Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$2.52B3.9064.05%30.57%
$2.79B-31.46%254.45%48.06%
$2.50B-14.59-705.73%87.94%57.84%
$2.63B-86.34%30.14%-10.08%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
$2.14B-6.60-10.10%
$3.20B-26.36%-22.19%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GLPG
Galapagos
31.96
3.20
11.13%
AGIO
Agios Pharma
43.33
-2.75
-5.97%
TVTX
Travere Therapeutics
28.06
10.18
56.94%
IRON
Disc Medicine
85.63
39.44
85.39%
TARS
Tarsus Pharmaceuticals
66.06
26.39
66.52%
RXRX
Recursion Pharmaceuticals
6.04
-0.83
-12.08%

Galapagos Corporate Events

Galapagos NV to Wind Down Cell Therapy Business Following Strategic Review
Oct 21, 2025

On October 21, 2025, Galapagos NV announced its intention to wind down its cell therapy business following a comprehensive strategic review. This decision, aimed at enhancing operational efficiencies and focusing on transformational business development, was unanimously approved by the board, excluding two directors from Gilead who recused themselves. The wind-down process is expected to impact approximately 365 employees and result in the closure of several sites across Europe, the U.S., and China. The company plans to allocate its resources to areas of unmet need, with anticipated costs ranging from €100 million to €125 million in operating expenses and €150 million to €200 million in restructuring costs through 2026.

Galapagos Appoints Fred Blakeslee as General Counsel
Oct 16, 2025

On October 16, 2025, Galapagos NV announced the appointment of Fred Blakeslee as Executive Vice President and General Counsel, succeeding Valeria Cnossen. Blakeslee, who brings extensive legal expertise and experience in high-impact partnerships, is expected to play a crucial role in Galapagos’ strategic transformation and growth. His previous role at AbbVie involved leading legal teams in significant mergers and acquisitions, including the $63 billion acquisition of Allergan PLC. This leadership transition is seen as a pivotal step in advancing Galapagos’ clinical pipeline and enhancing its position in the biopharmaceutical industry.

Galapagos Updates on Cell Therapy Business Strategic Review
Oct 1, 2025

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
Aug 7, 2025

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
Aug 6, 2025

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
Jul 24, 2025

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
Jul 24, 2025

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
Jul 23, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 22, 2025