Netherland's Galapagos to spin off innovative medicines unit (updated)

Lakefront Biotherapeutics NV

08/01/2025 07:15

(Adds CFO quote in paragraph 3, outlook in paragraph 4 and
layoffs in paragraph 5)
       Jan 8 (Reuters) - Dutch pharmaceutical firm Galapagos
 GLPG.AS  said on Wednesday it was planning to split into two
listed entities by mid-2025, creating a new company focused on
innovative medicines.
    The spun off part of the business, to be named at a later
date, will be listed on Euronext following the split, Galapagos
said in a press release.
    "The proposed separation aims to help investors more easily
assess the merits, and future prospects of the two distinct
businesses, allowing them to invest in each company based on
their own strategy," Galapagos' finance chief Thad Huston said.
    Following the reorganization, the group expects its
normalized annual cash outflow to be between 175 million and 225
million euros ($181 million and $233 million), excluding
restructuring costs.
    The reorganization is expected to lead to the reduction of
around 300 positions in Europe, or around 40% of the group's
workforce, it said.
($1 = 0.9669 euros)

 (Reporting by Alban Kacher in Gdansk; editing by Milla Nissi)
 ((alban.kacher@thomsonreuters.com))