Biotech company Galapagos is to split into two companies and cut 300 jobs in Europe. In Belgium, the reorganisation will lead to a ‘significant downsizing’ of the workforce. Galapagos also plans to close its facility in France.
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Mechelen-based biotech company Galapagos cuts 300 jobs in Europe, also ‘significant downsizing’ in Belgium
Colin Clapson
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The management of Galapagos, the biotech company founded in Mechelen in 1999, is announcing its decision today. The decision is on the agenda of a special works council this morning.
A new company with funds of EUR 2.45 billion will be created. It will focus on building ‘a pipeline of innovative medicines’. This will be done through acquisitions.
The new company, provisionally called SpinCo, will concentrate on companies with promising drug programmes or active in virology, immunology or oncology.
The rest of Galapagos will focus on cell therapy for the treatment of cancer. That is the business Galapagos has been focusing on since 2022. After the planned reorganisation, Galapagos expects to have about €500 million left in cash.
Significant downsizing in Belgium
Due to the demerger, Galapagos will also restructure its operations. The company will discontinue its so-called ‘small molecules’ business and will look for a possible buyer for this division.
This reorganisation will involve cutting around 300 jobs in the company across Europe. This amounts to 40 per cent of the workforce.
Due to this reorganisation, there will also be ‘a significant reduction in the workforce in Belgium’ a company press release notes. In addition, Galapagos plans to close its facility in France. How many jobs will be axed in Belgium is not yet clear.
Galapagos's headquarters remain in Mechelen. In addition, Galapagos will continue to operate from its two sites in the United States and from Leiden in the Netherlands.