Galapagos (GLPG)
NASDAQ:GLPG
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Galapagos
(NASDAQ:GLPG)
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Rating:68Neutral
Price Target:
$32.00
▲(10.61% Upside)
Action:ReiteratedDate:02/27/26
GLPG scores strongest on financial positioning (very low leverage and large cash resources) and supported valuation (low P/E). The main offset is persistent negative operating/free cash flow and earnings quality concerns highlighted by non-recurring profit drivers and ongoing restructuring/wind-down cash needs; technical signals are broadly neutral.
Positive Factors
Low leverage / strong balance sheet
Very low leverage gives Galapagos durable financial flexibility to fund R&D, pursue partnerships, and withstand biotech sector volatility. It reduces refinancing risk and preserves optionality for business development or strategic investments over the next 2–6 months.
Negative Factors
Persistent negative cash generation
Consistent negative operating and free cash flow means the business is not yet self-sustaining and remains dependent on the balance sheet or deal funding. Over several quarters this pressure can force deal-terms concessions, slow program progress, or require asset monetization if cash burn persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low leverage gives Galapagos durable financial flexibility to fund R&D, pursue partnerships, and withstand biotech sector volatility. It reduces refinancing risk and preserves optionality for business development or strategic investments over the next 2–6 months.
Read all positive factors
Galapagos (GLPG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend YieldN/A
Average Volume (3M)110.39K
Price to Earnings (P/E)0.6
Beta (1Y)0.81
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees704
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)13.90
Shares Outstanding65,897,070
10 Day Avg. Volume99,472
30 Day Avg. Volume110,389
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.57
Price to Sales (P/S)1.66
P/FCF Ratio-9.10
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda5.27
Forecast
1Y Price Target
$25.00Price Target Upside-13.58% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-2.42
Revenue Forecast (FY)$95.19M
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 pha...
How the Company Makes Money
Galapagos makes money primarily through collaboration-based revenues and, when applicable, product-related economics from partnered programs. Key revenue streams can include (i) upfront payments received when entering strategic research or develop...
Galapagos Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call balances strong strategic positives — a ~EUR 3.0 billion cash position, a return to operating profit in 2025 (driven by a EUR 1,069 million deferred income release), a positive Phase II topline for GLPG3667 in dermatomyositis, a refreshed leadership team and an active business-development pipeline — against meaningful near-term headwinds including large one-time impairment and wind-down charges (EUR ~399.8 million impact), a year-over-year cash decline (~9.6%), and chunky restructuring and wind-down cash outflows expected in 2026 (EUR 125–175 million plus additional costs). The operating profit is largely non-recurring accounting-driven, and execution risk remains around BD activity, TYK2 pathway decisions, and restoring investor confidence. Overall, highlights slightly outweigh lowlights given the strong balance sheet, strategic clarity and positive clinical result, but material near-term costs and uncertainty temper the outlook.Positive Updates
Strong year-end cash position
Financial investments and cash & cash equivalents totaled approximately EUR 2,998 million at December 31, 2025 (c. EUR 3.0 billion), providing significant strategic flexibility for business development.
Negative Updates
Large non-operational charges tied to cell therapy wind-down
Operating expenses were negatively impacted by EUR 399.8 million due to the decision to wind down cell therapy activities, including an impairment of EUR 228.1 million, severance of EUR 33.3 million, early termination collaboration costs of EUR 16.3 million, and other deal/wind-down costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong year-end cash position
Financial investments and cash & cash equivalents totaled approximately EUR 2,998 million at December 31, 2025 (c. EUR 3.0 billion), providing significant strategic flexibility for business development.
Read all positive updates
Company Guidance
Following a 2025 operating profit from continuing operations of EUR 295.1m (vs an operating loss of EUR 188.3m in 2024) that included the EUR 1,069m release of deferred income from an original ~EUR 2.3bn contract liability, Galapagos guided that the cell‑therapy wind‑down should be substantially complete by end‑Q3 2026, with an operating cash outflow of up to EUR 50m in Q1 2026 and one‑time restructuring cash costs of EUR 125–175m in 2026 (revised down EUR 25m from the prior EUR 150–200m range), plus ~EUR 35–40m of cash to finalize the January 2025 restructuring and up to EUR 40m of 2026 spend for the TYK2 (GLPG3667) program; the company closed 2025 with EUR 2,998m in cash and financial investments (down from EUR 3,317.8m a year earlier), holding EUR 2,159m in U.S. dollars (translated at 1.175) vs EUR 726.9m a year ago and now roughly 72% USD / 28% EUR (with plans to increase USD exposure given roughly 4% USD vs ~2% EUR yields), and expects to be cash‑flow neutral to positive by year‑end 2026 with an anticipated year‑end 2026 cash, cash equivalents and financial investments balance of approximately EUR 2.775–2.85bn (excluding any business development activity or currency fluctuations).Galapagos Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.11B | 275.65M | 239.72M | 241.25M | 484.85M |
| Gross Profit | 623.10M | 240.79M | 239.72M | 241.25M | 483.22M |
| EBITDA | 556.98M | 43.33M | 51.04M | 3.87M | -100.93M |
| Net Income | 320.90M | 74.08M | 211.70M | -217.99M | -125.42M |
Balance Sheet | |||||
| Total Assets | 3.41B | 4.14B | 4.36B | 4.73B | 5.19B |
| Cash, Cash Equivalents and Short-Term Investments | 3.00B | 3.12B | 3.68B | 4.09B | 4.70B |
| Total Debt | 6.92M | 11.72M | 9.60M | 21.90M | 26.86M |
| Total Liabilities | 170.58M | 1.24B | 1.56B | 2.21B | 2.55B |
| Stockholders Equity | 3.23B | 2.90B | 2.80B | 2.53B | 2.64B |
Cash Flow | |||||
| Free Cash Flow | -202.40M | -402.14M | -425.24M | -537.49M | -561.71M |
| Operating Cash Flow | -189.23M | -320.03M | -405.97M | -500.54M | -503.83M |
| Investing Cash Flow | 219.35M | 220.60M | 71.19M | -1.25B | 541.24M |
| Financing Cash Flow | -3.14M | -4.92M | -5.00M | -1.49M | -3.88M |
Galapagos Technical Analysis
Negative
28.93
Price Trends
32.72
Negative
32.47
Negative
32.22
Negative
Market Momentum
-1.08
Positive
34.12
Neutral
23.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLPG, the sentiment is Negative. The current price of 28.93 is below the 20-day moving average (MA) of 30.99, below the 50-day MA of 32.72, and below the 200-day MA of 32.22, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
We are dependent on the transfer of the Jyseleca business, including the European and UK Marketing Authorizations, the commercial, medical affairs and development activities for Jyseleca and approximately 400 Galapagos positions in 14 European countries, to Alfasigma. Q4, 2023
2.
Risks associated to the legal uncertainty around the Unitary patent court in Europe Q4, 2023
3.
If approved, our investigational products regulated as biologics may face competition from biosimilars approved through an abbreviated regulatory pathway. Q4, 2023
Galapagos Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.90B | 0.59 | 11.16% | ― | ― | ― | |
62 Neutral | $2.93B | -51.51 | -19.63% | ― | 182.44% | 47.21% | |
52 Neutral | $2.06B | ― | -31.07% | ― | 36.26% | -158.98% | |
52 Neutral | $1.69B | -2.84 | -63.98% | ― | -32.98% | -18.46% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $2.92B | -67.82 | -79.16% | ― | 114.22% | 77.02% | |
43 Neutral | $2.55B | -13.21 | -32.80% | ― | ― | -34.96% |
* Healthcare Sector Average
GLPG
Galapagos
28.93
4.59
18.86%
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66.85
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TARS
Tarsus Pharmaceuticals
68.76
22.89
49.90%
RXRX
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3.19
-1.46
-31.40%
Galapagos Corporate Events
Galapagos Strikes New Gilead Deal to Co-Develop Gamgertamig and Unlock $500 Million for Strategic Moves
Mar 31, 2026
On March 31, 2026, Galapagos announced a binding framework agreement with Gilead Sciences tied to Gilead’s planned $1.675 billion acquisition of US biotech Ouro Medicines, securing shared rights to Ouro’s T cell engager portfolio for a...
Galapagos Files 2025 Annual Report and Calls April 28 Meetings on Rebranding and Share Buyback
Mar 30, 2026
Galapagos NV has published its 2025 annual report and filed its related documentation with the U.S. SEC on March 30, 2026, ahead of its Annual and Extraordinary Shareholders’ Meetings scheduled in Mechelen, Belgium, on April 28, 2026. The ma...
Galapagos Seeks Strategic Tie-Up With Gilead Around Ouro Medicines Deal and T Cell Engager OM336
Mar 24, 2026
On March 23, 2026, Galapagos announced it is in advanced talks with long-time partner Gilead Sciences over a new strategic collaboration tied to Gilead’s planned $1.675 billion acquisition of Ouro Medicines, a T cell engager specialist. The ...
Galapagos Discloses Bank of America’s Stake Drop Below 5% Threshold
Mar 17, 2026
On March 17, 2026, Galapagos NV reported that it had received a transparency notification from Bank of America Corporation under Belgian disclosure rules, following a reduction in Bank of America’s economic exposure to the company. The notif...
Galapagos Discloses Bank of America Crossing 5% Ownership Threshold in March 2026
Mar 10, 2026
On March 10, 2026, Galapagos reported that it had received transparency notifications from Bank of America Corporation under Belgian disclosure rules, detailing recent changes in Bank of America’s exposure to Galapagos shares. The filings sh...
Galapagos Launches Major 2026 Subscription Right Plan, Expanding Equity Incentive Pool
Mar 6, 2026
On March 6, 2026, Galapagos NV’s board approved “Subscription Right Plan 2026,” creating 1,750,000 subscription rights for current and potential future employees, each entitling the holder to subscribe to one new Galapagos share....
Galapagos Names New Chief HR Officer to Support Ongoing Corporate Transformation
Mar 5, 2026
On March 5, 2026, Galapagos announced it had appointed seasoned life sciences human resources executive Tania Philipp as Chief Human Resources Officer, effective March 4, 2026, and added her to its Management Committee. She replaces outgoing HR ch...
Galapagos Discloses Bank of America Crossing 5% Shareholding Threshold
Mar 4, 2026
On March 4, 2026, Galapagos reported that it had received transparency notifications from Bank of America Corporation, revealing changes in the bank’s position in Galapagos’ voting rights and equivalent financial instruments during lat...
Galapagos Posts 2025 Profit and Accelerates Strategic Exit from Cell Therapy
Feb 24, 2026
Galapagos reported its full-year 2025 results on February 23, 2026, highlighting a strategic reset centered on winding down its cell therapy business and pivoting to business development-led growth. The company closed 2025 with about €3.0 bi...
Galapagos Adds Industry Veteran Paulo Fontoura to Board as Independent Director
Feb 19, 2026
Galapagos announced on February 19, 2026, that it has co-opted Dr. Paulo Fontoura as a Non-Executive Independent Director to its Board, effective February 9, 2026. He replaces Dr. Susanne Schaffert, who stepped down from the Board on November 1, 2...
Galapagos Discloses Bank of America Crossing 5% Voting Rights Threshold
Feb 10, 2026
On February 10, 2026, Galapagos reported that Bank of America Corporation and its affiliates repeatedly crossed the 5% transparency threshold in the company’s voting rights in early February, triggering a series of regulatory notifications u...
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.