Galapagos NV (GLPG): Business Model Canvas [Dec-2025 Updated]

You're looking at a biotech that just hit the reset button, and honestly, it's a fascinating case study in capital deployment. Galapagos NV (GLPG) is no longer just developing its own pipeline; it's sitting on a war chest of €3.05 billion in cash as of Q3 2025, actively pivoting to transformational M&A while still managing legacy streams like the €172.6 million in collaboration revenue from Gilead for the first nine months of 2025. This shift means their Business Model Canvas is less about lab work-though they still spent €351.9 million on R&D through 9M 2025-and more about deal-making and disciplined stewardship of that massive reserve. So, if you want to see exactly how a major pharma player restructures its entire value proposition around capital deployment and strategic acquisitions, dive into the nine blocks below to see the blueprint for this new era at Galapagos NV.

Galapagos NV (GLPG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Galapagos NV's current operations and future strategy, especially following the major restructuring announced in early 2025 and the subsequent strategic review updates.

Gilead Sciences: Collaboration on drug discovery platform and royalty payments

The relationship with Gilead Sciences remains central, particularly concerning the drug discovery platform and the cell therapy assets. Galapagos regained full global development and commercialization rights for its cell therapy business from Gilead in July 2025, effectively amending the original 2019 Option, License and Collaboration Agreement (OLCA) concerning cell therapies. This move means Galapagos now controls its cell therapy pipeline, now housed under Galapagos Cell Therapeutics, subject to future payments to Gilead. The original 2019 deal saw Gilead provide Galapagos with close to $4 billion upfront. Post-restructuring, Gilead was positioned to hold approximately 25% of both the legacy Galapagos entity and the newly formed SpinCo following the January 2025 plan. Galapagos views this ongoing partnership as a strategic advantage for pursuing future business development opportunities.

The financial mechanics of the platform access and the cell therapy rights are clearly defined:

Financial Metric/Agreement Detail	Amount/Term (as of late 2025)
Revenue Recognition - Drug Discovery Platform (H1 2025)	€115.1 million
Deferred Income - Drug Discovery Platform (June 30, 2025)	€1.0 billion (to be recognized linearly over remaining OLCA term)
Jyseleca® Royalties Received from Gilead (9M 2025)	€8.3 million
Jyseleca® Royalties Received from Gilead (9M 2024)	€8.4 million
Cell Therapy Royalty Obligation to Gilead	Single digit royalty on net sales or divestment proceeds

Alfasigma: Supply agreement for Jyseleca® (filgotinib) following its sale

Galapagos completed the transfer of its Jyseleca® business, including European and UK Marketing Authorizations and approximately 400 positions, to Alfasigma in early 2024. This transaction was designed to streamline Galapagos' operations and provide resources for pipeline investment, with estimated annualized savings between €150 million and €200 million. The financial structure included upfront cash, potential milestones, and earn-outs. Galapagos was obligated to contribute up to €40 million to Alfasigma for Jyseleca® related development activities, with this contribution due by June 2025. The ongoing supply arrangement under the transition agreement still impacts Galapagos' cost structure in 2025.

Here's a look at the financial components of the Alfasigma deal:

Financial Component	Amount/Terms
Upfront Payment Received by Galapagos	€50 million
Potential Milestone Payments Total	€120 million
European Sales Earn-outs	Mid-single to mid-double-digit percentages
Galapagos Development Contribution (due by June 2025)	Up to €40 million
Estimated Annualized Savings for Galapagos	€150 million to €200 million
Cost of Sales related to Supply to Alfasigma (9M 2025)	€29.3 million

The financial impact of the divestiture is still visible in the discontinued operations figures for 2025. The net profit from discontinued operations related to Jyseleca® was €1.7 million for the first nine months of 2025, a significant drop from the €69.2 million recorded for the same period in 2024.

Onco3R Therapeutics: Transfer of small molecule programs for equity and future milestones

In April 2025, Galapagos transferred multiple small molecule immunology and oncology assets, which included the Phase 1-ready SIK3 inhibitor, to Onco3R Therapeutics. This was part of Galapagos' pruning of its pipeline following the strategic review. Galapagos is participating in Onco3R's start-up capital through a €20 million convertible loan facility, which is set to convert during the next equity financing round. The contingent consideration received in exchange for the assets was valued by management at zero as of June 30, 2025, reflecting the very-early stage of the transferred programs. An impairment charge of €1.7 million was recorded related to these transferred assets.

Key financial elements of the Onco3R Therapeutics agreement include:

• Convertible Loan Facility: €20 million
• Contingent Consideration Fair Value (June 30, 2025): €0
• Impairment Recorded on Transferred Assets: €1.7 million

CELLforCURE (by Seqens): Collaboration for decentralized cell therapy manufacturing support

Galapagos is focused on building a global, decentralized manufacturing network to support its cell therapy pipeline, especially after regaining rights from Gilead. This strategy necessitates strong manufacturing support partnerships. The collaboration with CELLforCURE (by Seqens) is intended to support this decentralized cell therapy manufacturing. Specific financial terms, such as contract values or capacity commitments for 2025, were not detailed in the latest public financial disclosures reviewed.

Galapagos NV (GLPG) - Canvas Business Model: Key Activities

You're navigating a major strategic pivot at Galapagos NV, moving away from the cell therapy focus and doubling down on business development to build a new pipeline. This shift heavily influences the key activities you must execute right now, primarily centered on managing the cash you have and restructuring the organization.

Executing transformational business development (M&A/licensing)

The core activity now is deploying capital into new deals. The management team, bolstered by recent board appointments with expertise in financial leadership and corporate development, is actively evaluating opportunities. The priority is clear: seek out value-accretive transactions that bring in promising small molecule and biologics programs, especially in immunology and oncology, which have proof-of-concept data.

This focus on M&A and licensing is intended to build the pipeline for the entity that will continue as Galapagos post-separation. The goal is to execute these transformational deals to create shareholder value.

Disciplined capital stewardship of the €3.05 billion cash reserve

Managing the balance sheet is paramount, especially as you absorb the costs of the cell therapy wind-down. You must treat this cash reserve with extreme discipline to fund the new business development strategy and maintain operations for the retained entity.

Here's the quick math on your liquidity as of late 2025:

Metric	Amount (as of September 30, 2025)	Expected End of 2025
Cash and Financial Investments	€3,050.1 million	€2.975 billion to €3.025 billion
Cash and Financial Investments (Dec 31, 2024)	€3,317.8 million	N/A
Interest Income (First Nine Months 2025)	€77.2 million	N/A

What this estimate hides is that the year-end projection excludes any business development activities, so any major acquisition will immediately alter this figure. Still, the retained Galapagos entity aims to have a cash runway to 2028 based on current projections, excluding those deals.

Research and development for remaining pipeline assets (e.g., GLPG5101)

While the focus shifts to external deals, advancing the existing, high-potential cell therapy asset, GLPG5101, remains a critical activity, at least until the wind-down is fully complete. The R&D investment reflects this ongoing commitment.

• R&D expenses for the first nine months of 2025 totaled €351.9 million.
• GLPG5101, a CD19 CAR-T candidate, is scheduled for pivotal development initiation in 2026.
• The anticipated first approval timeline for GLPG5101 is now set for 2028.
• Galapagos plans to initiate clinical development for a new CAR-T candidate before the end of 2025.

You're continuing to present promising Phase 2 data for GLPG5101 at major conferences like ASH 2025, demonstrating high complete response rates in relapsed/refractory mantle cell lymphoma and DLBCL.

Winding down the cell therapy business and associated global sites

This is a major, time-bound activity following the October 21, 2025, announcement. The goal is to exit this business to reallocate capital, though you will consider any viable acquisition proposal that emerges during the process. This wind-down directly impacts your operating expenses and workforce.

The expected financial impact of this wind-down is substantial:

• Operating costs expected from Q4 2025 through 2026: €100 million to €125 million.
• One-time restructuring costs expected in 2026: €150 million to €200 million.
• The plan would result in the layoff of approximately 365 employees across global sites.
• Site closures are anticipated in Leiden (Netherlands), Basel (Switzerland), Princeton and Pittsburgh (US), and Shanghai (China).

If the full wind-down proceeds, the company projects it will be cash flow neutral to positive by the end of 2026, excluding any new business development spending.

Managing the Gilead collaboration agreement and deferred revenue recognition

The legacy agreement with Gilead Sciences remains a key activity for revenue recognition and balance sheet management. The amended agreement grants Galapagos full global development and commercialization rights to its pipeline, subject to single-digit royalties paid to Gilead on net sales of certain products.

The deferred income balance, which represents upfront payments received, is actively being recognized:

Gilead-Related Financial Item	Amount (as of September 30, 2025)	Period Covered
Deferred Income (Drug Discovery Platform)	€896.4 million	Balance Sheet
Revenue Recognition (Exclusive Access Rights)	€172.6 million	First Nine Months 2025
Royalties on Jyseleca®	€8.3 million	First Nine Months 2025

The deferred income allocated to the drug discovery platform was €1.0 billion as of June 30, 2025, showing the ongoing linear recognition schedule.

Finance: draft 13-week cash view by Friday.

Galapagos NV (GLPG) - Canvas Business Model: Key Resources

You're looking at the core assets Galapagos NV (GLPG) held as of late 2025, right after a major strategic pivot. These are the tangible and intangible things the company owns that are essential for its business model to function, even as the focus shifts.

Substantial cash and financial investments

The financial foundation was quite solid, providing flexibility for the new strategy focused on disciplined business development. You need to know the exact figures to gauge their runway.

As of September 30, 2025, Galapagos NV reported €3.05 billion in cash and financial investments. This figure was €3,050.1 million specifically. The company projected ending the year 2025 with a cash position between €2.975 billion and €3.025 billion, excluding any business development activities and currency fluctuations. This balance represented approximately 46 per share.

Here's a quick look at the cash position evolution:

Metric	Value as of September 30, 2025	Value as of December 31, 2024
Cash and Financial Investments (EUR)	3,050.1 million	3,317.8 million
USD Held in Cash/Investments (USD)	2,161.1 million	726.9 million
Projected Year-End Cash (EUR)	2.975 billion to 3.025 billion	N/A

Intellectual property portfolio from the drug discovery platform and cell therapy assets

The intellectual property (IP) base was centered on its proprietary drug discovery engine and its cell therapy pipeline, though the latter was undergoing a strategic review for divestiture as of late 2025. The company was actively prioritizing small molecule and biologics programs in immunology and oncology for future deployment of capital.

The cell therapy portfolio, which Galapagos NV was seeking to divest, included specific assets:

• Three CAR-T assets in clinical development across nine indications.
• Ten preclinical cell therapy programs.
• Key candidates included GLPG5101 for relapsed/refractory non-Hodgkin lymphoma (NHL) and GLPG5201 for chronic lymphocytic leukaemia (CLL) and Richter transformation (RT).
• The cell therapy candidate uza-cel was also part of the pipeline.

For the small molecule pipeline, the company planned to discontinue discovery programs and seek partners for existing assets, such as the TYK2 inhibitor, GLPG3667.

Decentralized cell therapy manufacturing platform and network

This platform was a significant differentiator, designed to overcome the limitations of centralized manufacturing that restrict patient access to CAR-T therapies. Only 25%-30% of eligible patients currently receive CAR-T therapy due to these constraints.

The platform's technical components and performance metrics are key:

• Delivers fresh, stem-like early memory CAR-T therapy in a median seven days vein-to-vein time.
• Avoids cell cryopreservation and eliminates the need for bridging therapy.
• Includes an end-to-end xCellit® workflow management and monitoring software system.
• Utilizes a decentralized, functionally closed, automated manufacturing platform, including Lonza's Cocoon®.

The network included a strategic collaboration with Catalent to support decentralized manufacturing for clinical studies of GLPG5101 in areas like New Jersey and New York.

Experienced business development and executive leadership team

The leadership team was reinforced in mid-2025 to drive the new strategy of pursuing transformational transactions. The team now reports to CEO Henry Gosebruch.

Key appointments effective August 4, 2025, included:

• Sooin Kwon, Chief Business Officer (CBO), bringing nearly 30 years of experience.
• Dan Grossman, Chief Strategy Officer (CStO), with more than two decades of leadership experience.
• Aaron Cox, Chief Financial Officer (CFO).

This transition involved a significant organizational shift; the company anticipated a reduction of approximately 300 positions across Europe, which represented 40% of its employees, related to the cell therapy wind-down.

Finance: draft 13-week cash view by Friday.

Galapagos NV (GLPG) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for Galapagos NV as of late 2025, especially following the strategic reorganization announced in January. These propositions underpin how the company intends to generate and sustain value, split between the core Galapagos entity and the newly formed SpinCo.

Access to a large capital base for value-accretive transactions in biotech.

The strategic separation was designed to immediately arm one part of the business for aggressive dealmaking. SpinCo was allocated a substantial war chest to pursue transformational acquisitions in areas of high unmet need. This immediate, dedicated capital pool is a key value proposition for potential M&A targets.

Here's the quick math on the capital structure following the January 2025 plan:

Entity	Allocated/Expected Cash Position (as of Jan 2025 Plan)	Date/Context
SpinCo (New Innovative Medicines Entity)	EUR 2.45 billion	Capital allocated at separation
Galapagos (Remaining Cell Therapy Entity)	Approximately €500 million	Expected post-separation cash to fund operations to 2028
Galapagos (Actual Balance)	€3.05 billion	Cash and financial investments as of September 30, 2025
Galapagos (Guidance)	Expected year-end 2025 between €2.975 billion and €3.025 billion	Excluding business development activities

This robust liquidity, particularly the EUR 2.45 billion for SpinCo, provides the necessary foundation for value-accretive transactions.

Potential for new, innovative medicines in oncology and immunology via M&A.

The value here is twofold: the dedicated focus of SpinCo on external innovation and the internal pipeline advancement by the core Galapagos entity. SpinCo's mandate is explicitly to build a pipeline through dealmaking in specific therapeutic areas. Anyway, the core Galapagos entity is doubling down on its cell therapy leadership.

The focus areas for pipeline expansion via M&A for the new entity include:

• Oncology
• Immunology
• Virology

To be fair, Galapagos NV has also been actively managing its legacy small molecule assets, transferring certain programs in oncology and immunology to Onco3R Therapeutics in exchange for equity and future milestones.

Decentralized manufacturing platform offering a rapid vein-to-vein time for cell therapies.

Galapagos NV's proprietary decentralized cell therapy manufacturing platform is a core technological value proposition, designed to overcome logistical hurdles common in cell therapy. This platform leverages technology, including Lonza's Cocoon®, to deliver fresh product rapidly.

Key performance indicators demonstrated in clinical studies as of late 2025 include:

Metric	Observed Value/Target	Context/Study
Median Vein-to-Vein Time	Seven days	Platform design goal and observed median
Fresh Product Infusion Rate	93%	Patients receiving fresh, non-cryopreserved GLPG5101 in one cohort
Treatment within Seven Days	93%	Percentage of patients treated within seven days of manufacturing
Complete Response Rate (GLPG5101)	97%	Observed in a cohort of the ATALANTA-1 study

This rapid delivery aims to provide greater physician visibility and an improved patient experience.

Continued revenue stream from the Gilead collaboration and Jyseleca® supply.

Even after the strategic reorganization, existing agreements provide a baseline revenue stream, supporting the ongoing operations of the core Galapagos entity while it focuses on cell therapy. The revenue recognition from the drug discovery platform collaboration with Gilead remains a significant component of total net revenue.

Financial figures for the first nine months of 2025 illustrate this continued flow:

• Total net revenues: €211.4 million
• Revenue from Gilead drug discovery platform rights: €172.6 million
• Royalties on Jyseleca® from Gilead: €8.3 million
• Cost of sales related to Jyseleca® supply to Alfasigma: €29.3 million

For comparison, in the first quarter of 2025, net revenues totaled €75.0 million, with €14 million specifically attributed to Jyseleca® supply revenues.

Galapagos NV (GLPG) - Canvas Business Model: Customer Relationships

You're looking at the relationship structure for Galapagos NV following its major strategic split in early 2025. The customer base has effectively been bifurcated, with the new Galapagos entity focusing on cell therapy and the newly formed SpinCo focusing on external pipeline building. This required a complete re-calibration of how they manage key stakeholders.

Strategic, high-level relationship management with pharmaceutical partners (Gilead)

The relationship with Gilead Sciences, Inc. has fundamentally shifted from a broad collaboration to a more defined, royalty-based arrangement, primarily linked to the assets transferred to SpinCo. This is a high-stakes, strategic relationship where the terms of the amended Option, License and Collaboration Agreement (OLCA) dictate future revenue recognition and partnership dynamics.

For the remaining Galapagos entity, the relationship is now focused on the cell therapy pipeline, where Galapagos gained full global development and commercialization rights. Still, the legacy agreement dictates a financial obligation:

• Galapagos NV is subject to payment of single digit royalties to Gilead on net sales of certain products post-amendment.

The financial flow from the drug discovery platform, which remains with the core Galapagos entity for now, shows consistent revenue recognition from Gilead, which is a key component of the relationship's financial underpinning:

Metric	Period Ended June 30, 2025 (H1)	Period Ended September 30, 2025 (9M)
Revenue from Gilead Drug Discovery Platform Access Rights	€115.1 million	€172.6 million
Jyseleca® Royalty Income from Gilead	Not explicitly stated for H1 2025	€8.3 million
Deferred Income Balance for Platform (as of Sept 30, 2025)	€1.0 billion (as of March 31, 2025)	€896.4 million

The deferred income balance of €896.4 million as of September 30, 2025, allocated to the drug discovery platform, represents future revenue recognition under this key partnership.

Transactional and contractual relationships with acquired/licensed companies

Following the strategic reorganization, Galapagos actively engaged in transactional relationships to divest non-core assets, specifically small molecule programs, to focus capital. The April 2025 agreement with Onco3R Therapeutics BV is a prime example of this contractual relationship.

Here's the quick math on that specific transaction:

• Galapagos sold assets, including a Phase 1-ready SIK3 inhibitor, to Onco3R Therapeutics in April 2025.
• Galapagos committed to supporting Onco3R's start-up capital via a convertible loan facility of €20 million.
• The fair value recognized by management for the contingent consideration from this asset transfer was zero as of June 30, 2025.
• An impairment charge of €1.7 million was recorded related to the assets transferred to Onco3R Therapeutics.

What this estimate hides is the potential future value if Onco3R successfully develops the assets, though the current accounting reflects a conservative view.

High-touch, specialized engagement with clinical investigators and oncology centers

Engagement here is intensely specialized, centered on the cell therapy pipeline, particularly the lead candidate GLPG5101. The decentralized manufacturing platform requires tight coordination with clinical sites to maintain speed and quality, which is a critical differentiator.

Data from the ATALANTA-1 study, which focuses on relapsed/refractory non-Hodgkin lymphoma (R/R NHL), illustrates the direct engagement metrics:

Metric	Value (as of October 14, 2024, data cut-off)
Patients Enrolled in ATALANTA-1 Phase 1/2 Study	64
Patients Receiving Treatment	61
Attrition Rate	5% (significantly lower than industry benchmarks)
Patients Infused with Fresh, Stem-like Early Memory CD19 CAR-T cells	95%

Furthermore, Galapagos supports external research through its Investigator Sponsored Research (ISR) process, evaluating unsolicited funding requests to add medical knowledge about their drug candidates. In terms of documentation clarity for investigators and patients, the company revised its Informed Consent Form, achieving a content reduction of 40%.

Investor relations focused on communicating the new capital deployment strategy

Investor relations in 2025 has been dominated by communicating the rationale and execution of the January 8, 2025, separation plan and the subsequent strategic review. The focus shifted from pipeline development to disciplined capital stewardship and transformative business development for the remaining Galapagos entity.

Key figures communicated to investors regarding capital deployment and financial positioning:

• SpinCo was allocated €2.45 billion in current cash from the separation.
• Galapagos NV ended the third quarter of 2025 with €3,050.1 million in cash and financial investments.
• The year-end 2025 cash position was guided to be between €2.975 billion and €3.025 billion, excluding business development activities and currency fluctuations.
• The normalized annual cash burn guidance for the focused Galapagos entity (post-separation) was set in the range of €175 million to €225 million.

The latest communication, following the strategic review concluded in Q3 2025, centered on the intention to wind down the cell therapy business, which management stated represents the optimal capital allocation pathway to support a stronger and sustainable future for Galapagos.

Finance: draft 13-week cash view by Friday.

Galapagos NV (GLPG) - Canvas Business Model: Channels

You're looking at how Galapagos NV gets its value propositions-the science and potential medicines-out to partners, patients, and the market as of late 2025. The channels have definitely shifted following the strategic reorganization announced in January 2025, which involved the planned separation into Galapagos and SpinCo, and the subsequent re-evaluation of that separation in May 2025.

Direct engagement with biotech companies for M&A and licensing

The primary channel for pipeline expansion, especially for the entity that will become SpinCo, is through direct business development activities, focusing on acquisitions and licensing deals. This is a critical channel now that the company is focused on disciplined capital deployment to build a new pipeline.

• The business development team is actively evaluating a broader array of opportunities.
• Priority is given to promising small molecule and biologics programs.
• The focus areas for these transactions include immunology and oncology.

The strategic review announced in May 2025 led to the evaluation of strategic alternatives for the cell therapy business, which is another form of direct engagement channel for value realization. The original Option, License and Collaboration Agreement (OLCA) with Gilead Sciences, Inc. now only applies to SpinCo, subject to payment of single digit royalties on net sales of certain products.

Clinical trial sites and academic research centers for pipeline development

For the core Galapagos entity, which is concentrating on cell therapies, clinical trial sites are the essential channel to test and validate investigational treatments and gain approval from health authorities like the FDA and EMA. Academic research centers are engaged through Investigator Sponsored Research (ISR) processes, though the current status is restrictive.

Pipeline Asset/Activity	Key Channel/Study	Status/Target Date	Associated Indication(s)
GLPG5101 (CD19 CAR-T)	ATALANTA-1 study (First U.S. patient dosed)	Pivotal development planned to start in 2026	Mantle Cell Lymphoma (MCL) selected as lead indication
GLPG5101 (CD19 CAR-T)	Regulatory Alignment	Aiming for first approval by 2028	MCL cohort top-line data presentation in H2 2025
New CAR-T Candidate	Initiate Clinical Development	Planned before the end of 2025	Not disclosed
Investigator Sponsored Research (ISR)	External Funding Requests	Currently not supporting any new ISR proposals (Updated August 2025)	Complementary to product pipeline

The company is also advancing uza-cel, a TCR T-cell therapy candidate for head and neck cancer, in collaboration with Adaptimmune, which involves leveraging manufacturing channels like the one established with CELLforCURE by Seqens in Paris.

Direct supply chain for Jyseleca® to Alfasigma under transition agreement

The channel for the former Jyseleca® (filgotinib) business is now a direct supply arrangement with Alfasigma following the transaction completion on January 31, 2024. This is managed through a transition agreement.

• Galapagos will contribute up to €40 million to Alfasigma by June 2025 for Jyseleca® related development activities.
• Cost of sales related to the supply of Jyseleca® to Alfasigma was €18.4 million for the first six months of 2025.
• Galapagos expects annualized savings between €150 million and €200 million from this streamlining.
• Royalties received from Gilead on Jyseleca® amounted to €8.3 million for the first nine months of 2025.

The total consideration from the original sale included an upfront payment of €50 million and potential sales-based milestones totaling €120 million.

Financial markets (Euronext and NASDAQ) for capital raising and shareholder communication

The financial markets serve as the crucial channel for capital structure management, shareholder communication, and corporate actions, with Galapagos NV maintaining dual listings.

Market Activity/Metric	Entity	Value/Amount (as of late 2025)	Date/Period
Cash & Financial Investments Balance	Galapagos (Remaining entity)	€3,050.1 million	September 30, 2025
Projected Year-End Cash Position	Galapagos (Remaining entity)	€2.975 billion to €3.025 billion	End of 2025
Capitalization for New Entity (SpinCo)	SpinCo	Approximately €2.45 billion	Post-Separation
Cash Retained by Galapagos (Post-Separation)	Galapagos (Remaining entity)	Approximately €500 million	Post-Separation
Subscription Rights Created	Galapagos (New Plan 2025 (B))	1,800,000 rights created	August 7, 2025
Subscription Right Exercise Price	Galapagos (New Plan 2025 (B))	€28.16	August 7, 2025

Shareholder communication occurs via press releases and conference calls, such as the one held on November 5, 2025, reporting nine months 2025 results. The planned separation intended for SpinCo to list on Euronext initially, with both companies remaining traded on Euronext and NASDAQ.

Galapagos NV (GLPG) - Canvas Business Model: Customer Segments

You're looking at the customer segments for Galapagos NV as of late 2025, post-strategic reorganization. The focus has sharpened considerably, moving away from small molecules to prioritize cell therapy leadership and disciplined capital deployment via business development. The core customer base is now segmented by the type of value exchange they offer or receive.

Large pharmaceutical companies for co-development or licensing deals

The relationship with major pharma, specifically Gilead Sciences, remains a key component of the revenue structure, even after the separation of the innovative medicines business. These large entities are crucial as partners for existing assets and as potential acquirers or licensors for future pipeline candidates. For the first nine months of 2025, the revenue recognition related to the exclusive access rights granted to Gilead for the drug discovery platform was a significant €172.6 million.

This segment is vital for de-risking the pipeline and providing non-dilutive funding. The remaining Galapagos entity is actively seeking partners for its small molecule assets, which were offered up following the strategic realignment.

Biotechnology companies seeking strategic investment or acquisition

This segment represents the future growth engine, primarily managed through the strategic deployment of the company's substantial cash reserves. The prior plan for SpinCo involved capital of €2.45 billion earmarked for acquiring or partnering on transformative assets in oncology, immunology, and virology. Now, the current Galapagos leadership is focused on executing 'value-accretive transactions' to build out the pipeline, meaning smaller, innovative biotech firms with proof-of-concept data are prime targets for investment or acquisition.

The financial backing available for these deals is substantial, as Galapagos NV reported a robust balance sheet with €3.05 billion in cash and financial investments as of September 30, 2025. Management projects ending 2025 with approximately €2.975 billion to €3.025 billion in cash, excluding any business development activities.

Patients with high unmet medical needs in oncology (e.g., mantle cell lymphoma)

The ultimate customer for the cell therapy focus is the patient population facing severe, often refractory, diseases. Galapagos NV is heavily focused on its CAR-T pipeline, which includes three CAR-T assets in clinical development across nine indications.

The lead candidate, GLPG5101, a CD19-targeted CAR-T therapy, has designated mantle cell lymphoma (MCL) as its lead indication for pivotal trials. This aggressive blood cancer represents a critical unmet need for patients with limited options post-relapse. The company is aiming for a first approval by 2028.

• CAR-T assets in clinical development: 3
• Total indications covered by these assets: 9
• Preclinical cell therapy programs: 10
• Target approval year for lead asset: 2028

Healthcare providers and oncologists involved in clinical trials

These professionals are essential partners for validating the technology and ultimately delivering the therapy. They are the gatekeepers to patient access during the development phases. The ATALANTA-1 Phase 1/2 trial for GLPG5101 has seen enrollment expansion beyond Europe, specifically dosing its first U.S. patient. This signals an active engagement with U.S. healthcare providers and oncologists.

The company's decentralized manufacturing model, which aims for a median seven-day vein-to-vein time, is a key value proposition that appeals directly to clinical sites needing efficient logistics for personalized cell therapies. The total net revenues for the first nine months of 2025 were €211.4 million, reflecting ongoing operational activity across its programs.

Here's a quick look at the key financial and pipeline metrics relevant to these customer segments as of late 2025:

Metric Category	Specific Data Point	Value as of Late 2025
Financial Strength	Cash & Financial Investments (Sep 30, 2025)	€3.05 billion
Financial Strength	Projected Year-End 2025 Cash (Excl. BD)	€2.975 billion to €3.025 billion
Pharma Partnerships	Gilead Collaboration Revenue (9M 2025)	€172.6 million
Oncology Pipeline	CAR-T Assets in Clinical Development	3
Oncology Pipeline	Lead Indication (GLPG5101)	Mantle Cell Lymphoma (MCL)
Operational Efficiency	Target Cell Therapy Vein-to-Vein Time	Median 7 days

Galapagos NV (GLPG) - Canvas Business Model: Cost Structure

You're looking at the expenses that drove Galapagos NV's financial performance through the first nine months of 2025, especially as the company navigated a major strategic shift. The cost structure reflects heavy investment in R&D alongside significant one-time charges related to restructuring.

High Research and Development (R&D) expenses represent the largest component of operating costs from continuing operations. For the first nine months of 2025, R&D expenses hit €351.9 million, a substantial increase from €238.2 million in the same period last year. This rise is tied directly to the ongoing clinical programs and the wind-down activities.

The cost structure was heavily impacted by significant restructuring costs following the announced intention to wind down the cell therapy business and the earlier strategic reorganization. The total operating loss from continuing operations was negatively impacted by an impairment on the cell therapy business of €204.8 million and the executed strategic reorganization for €135.5 million for the nine months ended September 30, 2025.

These restructuring charges are broken down into several specific cost categories:

• Severance costs: €47.5 million.
• Costs for early termination of collaboration agreements: €45.5 million (9M 2025).
• Impairment on fixed assets related to small molecules activities: €9.5 million (9M 2025).
• Accelerated non-cash cost recognition for subscription right plans: €9.8 million (9M 2025).

General and Administrative (G&A) expenses, which include Selling and Marketing (S&M) costs, also saw an increase. For the first nine months of 2025, S&M and G&A expenses totaled €109.0 million, up from €93.2 million in the prior year period. This rise was mainly driven by higher personnel costs, including severance, and increased legal and professional fees associated with deal-making.

Here is a comparison of key operating expenses for the first nine months of 2025:

Expense Category	9M 2025 (€ millions)	9M 2024 (€ millions)
R&D expenses	(351.9)	(238.2)
S&M and G&A expenses	(109.0)	(93.2)
Impairment of the cell therapy business	(204.8)	-
Total Operating Loss from Continuing Operations	(462.2)	(125.6)

The costs associated with maintaining the large cash and investment portfolio are reflected in the operational cash burn and financial results. Galapagos NV ended the third quarter of 2025 with €3,050.1 million in cash, cash equivalents, and financial investments. The operational cash burn for the first nine months of 2025 was -€145.1 million. Conversely, fair value adjustments and net exchange differences resulted in a negative impact of -€50.5 million on the income statement for the same period. However, fair value gains and interest income from the portfolio, excluding currency effects, amounted to €77.2 million for the nine months ending September 30, 2025. The company guided to end 2025 with cash and investments between €2.975 billion and €3.025 billion.

Deal costs, a specific component of G&A/restructuring, were €21.4 million for the nine months ended September 30, 2025.

Finance: draft 13-week cash view by Friday.

Galapagos NV (GLPG) - Canvas Business Model: Revenue Streams

You're looking at the core income drivers for Galapagos NV as of late 2025, which are heavily weighted toward existing, high-value partnerships. Honestly, the structure shows a clear reliance on the upfront monetization of its discovery platform and ongoing product support revenue streams, rather than broad product sales.

The financial data for the first nine months of 2025 clearly illustrates where the money is coming from. For the nine months ended September 30, 2025, Galapagos NV reported total net revenues of €211.426 million.

Here's the quick math on the components making up that total for the nine months ended September 30, 2025:

Revenue Stream Component	Amount (9M 2025)
Collaboration Revenue (Gilead Platform Access)	€172.6 million
Supply Revenues (Jyseleca® to Alfasigma)	€29.332 million
Royalties on Jyseleca® (from Gilead)	€8.3 million
Total Net Revenues (Reported)	€211.426 million

The largest single component remains the revenue recognition tied to the Gilead Sciences partnership. This is the income derived from the exclusive access rights granted for Galapagos NV's drug discovery platform, which is recognized over the term of the agreement.

The revenue streams can be broken down into these key areas:

• Collaboration revenue from Gilead's platform access: €172.6 million (9M 2025).
• Royalties on net sales of Jyseleca® (filgotinib): €8.3 million (9M 2025).
• Supply revenues from the sale of Jyseleca® to Alfasigma, which amounted to €29.332 million for the nine months ended September 30, 2025.
• Potential future milestone payments and royalties from new business development deals.

To be fair, the supply revenue is a transitional item related to the Jyseleca® business transfer to Alfasigma, but it was a significant contributor to the top line. The cost of sales related to this supply was €29.281 million for the same nine-month period, showing a very tight margin on that specific revenue line. The focus for future growth, as management has indicated, is definitely on securing those new business development deals.

Finance: draft 13-week cash view by Friday.