Galapagos (GLPG) investor relations material

Strategic transformation and capital allocation

• Undergoing a major transformation, exiting the cell therapy business to focus on building a new pipeline with €3 billion in cash reserves.

• Decision to abandon the planned company split in favor of redeploying capital into new, de-risked opportunities in immunology and oncology.

• Wind down of cell therapy business expected to conclude in Q1, with restructuring and wind down costs estimated at €250–325 million.

• Post-wind down, company will have a lean team of 35–40 employees and expects to be cash flow neutral or positive by end of 2026.

• No near-term plans for capital distributions due to shareholder structure and Belgian legal requirements.

Business development and partnership strategy

• Focused on disciplined business development, targeting de-risked or post-proof-of-concept assets, especially in immunology and oncology.

• Flexible approach to M&A and in-licensing, open to acquiring companies or partnering in various structures.

• Avoiding highly competitive assets sought by large pharma, instead seeking opportunities overlooked by bigger players.

• Close collaboration with Gilead, which owns 25%, including joint deal sourcing and potential co-funding of transactions.

• Actively renegotiating partnership terms (OLCA) with Gilead to enable more mutually beneficial deals.

Cell therapy business wind down and asset management

• Board determined that capital could be better deployed outside ex-vivo CAR-T, given industry trends and high investment requirements.

• Wind down process involves consultation with works councils in Belgium and the Netherlands, with updates expected in Q1.

• Open to selling the cell therapy business for a nominal amount if a buyer can support employees and business continuity.

• Termination of contracts with partners like Thermo Fisher and Lonza will be managed thoughtfully to ensure patient care and smooth transition.