Brief: Galapagos Intends To Separate Into Two Publicly Traded Entities

Lakefront Biotherapeutics NV

08/01/2025 06:37

Jan 8 (Reuters) - Galapagos NV  GLPG.AS :
    * REG-GALAPAGOS TO UNLOCK SHAREHOLDER VALUE BY DECLARING ITS
INTENT TO SEPARATE INTO TWO PUBLICLY TRADED ENTITIES
    * TO IMPLEMENT A STRATEGIC REORGANIZATION
    * SPINCO WILL BE CAPITALIZED WITH APPROXIMATELY EUR 2.45
BILLION
OF GALAPAGOS' CURRENT CASH
    * SPINCO WILL BE FOCUSED ON BUILDING A PIPELINE OF
INNOVATIVE
MEDICINES
    * AGREED WITH GILEAD, FOLLOWING SEPARATION, OLCA WILL ONLY
APPLY
TO SPINCO AND NOT GALAPAGOS
    * GILEAD WILL HOLD APPROXIMATELY 25% OF OUTSTANDING SHARES
IN BOTH
GALAPAGOS AND SPINCO
    * GALAPAGOS SHAREHOLDERS WILL RECEIVE SHARES OF SPINCO ON
PRO RATA
BASIS BASED ON THEIR SHARES OF GALAPAGOS
    * GALAPAGOS TO EXECUTE FOCUSED CELL THERAPY VISION IN
ONCOLOGY
    * FOLLOWING PLANNED REORGANIZATION, GALAPAGOS EXPECTS ITS
NORMALIZED ANNUAL CASH BURN TO BE BETWEEN EUR 175 MILLION AND
EUR 225 MILLION, EXCLUDING RESTRUCTURING COSTS
    * UPON SEPARATION, GALAPAGOS EXPECTS TO HAVE APPROXIMATELY
EUR 500
MILLION IN CASH
    * SEPARATION IS EXPECTED TO OCCUR BY MID-2025
    * TO REDUCE APPROX 300 POSITIONS ACROSS ORGANIZATION IN
EUROPE,
I.E. 40% OF COMPANY'S EMPLOYEES
    * MEANINGFUL REDUCTIONS IN STAFF IN BELGIUM AND SITE IN
FRANCE IS
EXPECTED TO CLOSE

Source text:  ID:nGNE8J98Ky 
Further company coverage:  GLPG.AS 

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