Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on GLPG

Galapagos NV's recent performance was negatively impacted by a 16% decline in revenue to €65.3m in Q2 2025, missing expectations. The company's decision to wind down its cell therapy business, announced on October 21, 2025, may have contributed to investor uncertainty. Additionally, the company's exploration of strategic alternatives for its cell therapy business, including potential divestiture, has been ongoing since May 13, 2025. The appointment of a new General Counsel, Fred Blakeslee, on October 16, 2025, may be seen as a positive step, but does not offset the negative drivers.

1.c. Company Highlights

2. Galapagos' Strategic Review Unfolds with Mixed Financial Results

Galapagos reported a total operating loss of EUR 462.2 million for the first 9 months of 2025, largely due to an impairment charge of EUR 204.8 million related to the cell therapy business and EUR 135.5 million in strategic reorganization costs. The actual EPS came out at '-3.07', significantly below estimates of '5.16'. The company's substantial cash balance of approximately EUR 3 billion generated EUR 77 million in interest income during the same period. The financial results were mixed, with significant one-time costs impacting the bottom line.

Publication Date: Nov -29

📋 Highlights
  • Strategic Wind-Down of Cell Therapy Business:: Galapagos will cease operations in this area, impacting 365 employees across five global sites, with EUR 204.8M impairment and EUR 135.5M reorganization costs in 9M2025.
  • Strong Cash Position and Income Streams:: EUR 3.05B cash reserves (Sept 2025) and EUR 77M interest income in 9M2025, alongside EUR 15–20M annual royalties from Jyseleca sales.
  • Financial Losses and Restructuring Costs:: 9M2025 total operating loss of EUR 462.2M, with EUR 100–125M operating cash impact and EUR 150–200M one-time costs expected in 2026.
  • Gilead Partnership and Future Focus:: Leverage Gilead’s 25% stake for BD deals in oncology/immunology, aiming for cash flow neutrality by 2026 and EUR 2.975–3.05B cash by year-end 2025.
  • TYK2 Program and Asset Value:: Data expected in early 2026 for final R&D program; EUR 30.4M net financial income (down from EUR 71.7M in 9M2024) due to rate shifts and cash management.

Cash Position and Interest Income

The company's cash, cash equivalents, and current financial investments stood at EUR 3.05 billion as of September 30, 2025, with expectations to end 2025 with approximately EUR 2.975 billion to EUR 3.05 billion in cash and financial investments. This substantial cash reserve is expected to generate significant interest income, although the net other financial income decreased to EUR 30.4 million for the first 9 months of 2025, compared to EUR 71.7 million for the same period in 2024, mainly due to decreasing interest rates and a shift in investment strategies.

Strategic Reorganization and Future Plans

As part of its strategic review, Galapagos decided to wind down its cell therapy business, affecting approximately 365 employees across various locations. The company anticipates incurring EUR 100-125 million in operating cash outflows and EUR 150-200 million in one-time restructuring costs in 2026. Galapagos aims to achieve cash flow neutrality by the end of 2026, with a focus on business development and M&A activities, prioritizing clinically derisked and differentiated opportunities, especially in areas with strategic synergy with Gilead, its significant shareholder.

Valuation and Growth Prospects

With a P/E Ratio of -6.27 and an EV/EBITDA of -5.94, the market has priced in significant challenges for the company. Analysts estimate next year's revenue growth at -1.9%, indicating a challenging environment. However, Galapagos' substantial cash reserves and potential for royalties and earn-outs from existing partnerships provide a financial cushion. The company's partnership with Gilead and its focus on financially disciplined deal-making are expected to drive future growth.

Key Investment Considerations

Investors should monitor Galapagos' progress in winding down its cell therapy business, its ability to identify and execute new business development opportunities, and the impact of its partnership with Gilead. The company's significant cash position and lack of debt provide a strong foundation for future activities. With a P/B Ratio of 0.67, the stock may present value for investors willing to take on the associated risks.

3. NewsRoom

Card image cap

Galapagos Receives Transparency Notifications from Bank of America

Nov -26

Source:

Card image cap

Is Galapagos (ENXTAM:GLPG) Fairly Valued After Recent Share Price Uptick?

Nov -11

Source:

Card image cap

Galapagos NV (GLPG) Q3 2025 Earnings Call Highlights: Navigating Strategic Shifts Amidst ...

Nov -06

Source:

Card image cap

Galapagos Reports Nine Months 2025 Financial Results and Provides Business Update

Nov -05

Source:

Card image cap

Galapagos to Present New Data from Cell Therapy Program at ASH 2025

Nov -03

Source:

Card image cap

Galapagos Announces Changes to its Board to Accelerate Strategic Focus on Business Development

Oct -30

Source:

Card image cap

Galapagos to Present In Vitro Data at ACR Convergence 2025 Suggesting Differentiation of GLPG3667 from Other TYK2 Inhibitors

Oct -23

Source:

Card image cap

Why Galapagos (ENXTAM:GLPG) Is Down 7.9% After Exiting Cell Therapy and Cutting Jobs – And What's Next

Oct -23

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Medicines

Expected Growth: 9.27%

Galapagos NV's 9.27% growth is driven by increasing demand for its innovative pipeline of orphan diseases treatments, strong partnerships with pharma giants, and expansion into new markets. Additionally, the company's focus on research and development, coupled with a strong cash position, enables it to invest in new technologies and opportunities, further fueling growth.

7. Detailed Products

COMPOUND LIBRARIES

Galapagos NV offers a comprehensive collection of compound libraries, including focused libraries, diversity libraries, and targeted libraries, to support drug discovery and development.

ADME-Tox SERVICES

Galapagos NV provides ADME-Tox services, including in vitro and in vivo studies, to assess the absorption, distribution, metabolism, excretion, and toxicity of compounds.

CELL-BASED ASSAYS

Galapagos NV offers cell-based assays, including reporter gene assays, functional assays, and phenotypic assays, to study cellular responses and identify potential drug targets.

IN VITRO PHARMACOLOGY SERVICES

Galapagos NV provides in vitro pharmacology services, including receptor binding assays, enzyme assays, and cell-based assays, to study the pharmacological activity of compounds.

IN VIVO PHARMACOLOGY SERVICES

Galapagos NV offers in vivo pharmacology services, including efficacy and safety studies, to evaluate the pharmacological activity of compounds in animal models.

8. Galapagos NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Galapagos NV is moderate due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Galapagos NV is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Galapagos NV is moderate due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Galapagos NV is high due to the attractiveness of the market and the ease of entry for new competitors.

Intensity Of Rivalry

The intensity of rivalry for Galapagos NV is high due to the presence of several established competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.34%
Debt Cost 3.95%
Equity Weight 99.66%
Equity Cost 4.14%
WACC 4.14%
Leverage 0.34%

11. Quality Control: Galapagos NV passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Basilea Pharmaceutica

A-Score: 5.4/10

Value: 5.4

Growth: 8.1

Quality: 8.2

Yield: 0.0

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Bavarian Nordic

A-Score: 5.1/10

Value: 6.4

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Galapagos

A-Score: 3.9/10

Value: 8.0

Growth: 2.9

Quality: 5.0

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Hyloris Pharma

A-Score: 3.8/10

Value: 6.2

Growth: 6.2

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Compugen

A-Score: 3.8/10

Value: 6.8

Growth: 7.4

Quality: 4.4

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
MediWound

A-Score: 2.9/10

Value: 6.0

Growth: 3.3

Quality: 3.3

Yield: 0.0

Momentum: 3.5

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.04$

Current Price

27.04$

Potential

-0.00%

Expected Cash-Flows