By Joshua Kirby

Shares in Galapagos NV dropped sharply after the Belgian biotech firm said it would wind down its cell-therapy operations, putting paid to plans to sell the business off after no viable offers were made.

"The intention to wind down follows a comprehensive review of strategic alternatives, including a potential divestiture," Galapagos said Tuesday.

It said some 365 jobs would be lost across the business's operations in Europe, the U.S. and China. The decision, once confirmed by labor-council procedures, will imply additional operating costs of 100 million to 125 million euros ($116 million-$145.5 million) from this quarter through 2026, and one-off restructuring costs of 150 million to 200 million euros next year.

Amsterdam shares traded 16% lower at 25 euros Tuesday morning. Shares have lost 5.7% year-to-date.

The decision to shutter the cell-therapy business comes after Galapagos said earlier this month that it was looking at a potential sale of the business. But that idea proved a nonstarter, Galapagos said.

"Following a limited number of non-binding offers, ultimately no viable proposals were received with terms or financing that would reasonably support the business's future," Chief Executive Henry Gosebruch said.

Allocating cash to other businesses areas has emerged as "a more attractive use of our resources," Gosebruch said. The company had previously shelved a plan to separate into two publicly traded entities.

Still, Galapagos said it would engage with any interest in acquiring the cell-therapy business, were it to emerge during the wind-down process.

"The remaining Galapagos NV organization would be repositioned for long-term growth through transformational business development," the company said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 21, 2025 06:41 ET (10:41 GMT)

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