Paul Stoffels, who joined Galapagos as CEO in 2022 after leaving his position as Johnson & Johnson's chief scientific officer, has announced his intention to retire within the next 12 months. The announcement comes as the Belgian biotech undergoes a significant restructuring, splitting into two separate entities.
Stoffels will remain with Galapagos until a successor is appointed and will continue as non-executive chair of the board, subject to reappointment at the 2026 annual meeting. The company has initiated a search for a new CEO to lead the original Galapagos business.
Strategic Split and New Leadership
The restructuring will create two distinct companies. The original Galapagos will retain its cell therapy assets and continue advancing its current pipeline, while a new spin-off company—temporarily named XYZ SpinCo—will control approximately €2.45 billion ($2.8 billion) in cash from Galapagos's legacy partnership with Gilead Sciences.
Henry Gosebruch has been appointed as the founding CEO of SpinCo. Gosebruch brings significant experience in mergers and acquisitions, having most recently served as president and CEO of neuroscience biotech Neumora. Prior to that, he was chief strategy officer at AbbVie, where he helped execute more than 100 business development transactions, including AbbVie's $63 billion acquisition of Allergan and the partnership for Skyrizi, now one of the pharma's best-selling medicines.
"Henry is the right leader to take on the CEO role for SpinCo as he leverages his extensive experience and the strong balance sheet to build an exciting pipeline," said Andrew Dickinson, Gilead's CFO, in the announcement.
Stoffels' Incomplete Turnaround Mission
When Stoffels took over from founding CEO Onno van de Stolpe in 2022, he inherited a company that had experienced a series of clinical failures since its founding in 1999. He vowed to transform Galapagos within five years through an aggressive M&A strategy to replace the failed clinical programs.
"I am proud to have transformed Galapagos into an R&D-driven biotech company with a clear focus on oncology," Stoffels stated in the announcement.
Under his leadership, Galapagos pivoted toward cell therapy through the acquisitions of CellPoint and Abound Bio in 2022. However, the company's transformation remains incomplete, with its lead clinical program, CD19 CAR T candidate GLPG5101, only in Phase II trials. In February, Galapagos shifted more resources behind this lead candidate while deprioritizing other programs.
Activist Investor Involvement
Complicating matters for Galapagos is the recent involvement of Kevin Tang, who has purchased more than 5% of the company's shares through his various firms. Tang has emerged as an activist investor in Galapagos. As the owner of biotech buyout firm Concentra Biosciences, Tang has a reputation for acquiring struggling biotechs and shutting them down, raising questions about his intentions for Galapagos.
SpinCo's Future Direction
SpinCo will focus on building a pipeline of medicines with demonstrated proof-of-concept data and the potential to improve standard-of-care options for patients. With its substantial cash reserves, the company is positioned to execute one or more transformative transactions under Gosebruch's leadership.
The spin-off is expected to pursue assets that have already shown clinical promise, aligning with Gosebruch's extensive background in strategic acquisitions and partnerships. This approach represents a shift from Galapagos's historical focus on internal drug development, which has yielded mixed results over the company's 25-year history.
Market Implications
The restructuring comes at a critical time for Galapagos as it attempts to redefine its strategic direction after years of setbacks. The separation into two entities allows for more focused approaches: one continuing the cell therapy development work initiated under Stoffels, and the other leveraging financial resources to acquire promising late-stage assets.
For investors, the split potentially creates two distinct investment opportunities with different risk profiles—Galapagos representing a more traditional biotech development play, and SpinCo offering exposure to a well-funded acquisition vehicle led by an experienced dealmaker.
As Stoffels prepares to step back from day-to-day operations, his legacy at Galapagos will be defined by this strategic pivot and corporate restructuring, even if his original five-year turnaround mission remains unfinished.
