Galapagos (GLPG) Investor Update summary

Strategic transformation and separation

• Galapagos will separate into two publicly traded entities: Galapagos (cell therapy focus) and SpinCo (acquisitions and pipeline building), with all shareholders receiving one SpinCo share per Galapagos share.

• SpinCo will be capitalized with approximately €2.45 billion and will pursue acquisitions and licensing in oncology, immunology, and virology, with Gilead as a collaboration partner.

• Galapagos gains full global rights to its pipeline, ending the OLCA with Gilead, which will transfer to SpinCo.

• The separation is targeted for mid-2025, with both companies based in Belgium and listed on Euronext; SpinCo also plans a Nasdaq listing.

• Gilead will hold about 25% of both entities post-separation, with board representation in SpinCo.

Operational and financial outlook

• Galapagos will focus on next-generation cell therapy, leveraging a decentralized manufacturing platform and discontinuing small molecule discovery programs.

• Cash runway for Galapagos is projected to last until late 2027 or early 2028, with €500 million at separation and an annual burn rate of €175–225 million.

• Major restructuring will reduce Galapagos’ workforce by about 300 positions (40%), mainly in Europe, and close the French site.

• SpinCo will have an independent management team and board, with Gilead and EcoR1 representation.

• SpinCo will provide a backstop loan facility to Galapagos as part of the separation agreements.

Pipeline and R&D progress

• Galapagos’ cell therapy pipeline includes CAR-T and TCR-T assets for hematological and solid tumors, with three CAR-Ts in clinical development and ten preclinical programs.

• Lead CAR-T candidate GLPG5101 has shown promising efficacy and safety in relapsed/refractory NHL, with US enrollment planned this quarter.

• Next-generation armed CAR-Ts are expected to enter first-in-human trials by year-end for hematologic cancers and by early 2026 for solid tumors.

• TYK2 inhibitor (GLPG-3667) is in phase 2 for SLE and dermatomyositis, with broader autoimmune potential; small molecule programs will be discontinued or partnered.

• Small molecule discovery and shared services will be most impacted by headcount reduction.