Galapagos NV (GLPG, Financial) has unveiled significant leadership updates as part of its strategic plan to divide into two independent entities. Henry Gosebruch has been appointed as the inaugural CEO of the soon-to-be-renamed subsidiary, currently known as XYZ SpinCo. This subsidiary will be financially supported with an initial investment of approximately EUR 2.45 billion in cash and cash equivalents.
SpinCo aims to establish a robust pipeline of medicines that have proven proof-of-concept, with ambitions to enhance patient care standards through substantial transformative deals. Gosebruch brings a wealth of experience in mergers and acquisitions, business development, partnerships, and venture capital, having previously served as the President and CEO of Neumora (NMRA).
Simultaneously, Galapagos is set to carry on with the advancement of its own pharmaceutical pipeline. Paul Stoffels, the current Chair and CEO of Galapagos, has announced his intention to step down from his CEO position once a suitable successor is appointed. However, he will remain as the non-executive chair of the board, continuing to offer strategic direction and support, contingent on his re-election as a director at the 2026 annual meeting.
The board of directors is undertaking a search for a new CEO to guide Galapagos, with the recruitment expected to be finalized within the coming year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Galapagos NV (GLPG, Financial) is $26.94 with a high estimate of $31.93 and a low estimate of $21.95. The average target implies an upside of 9.33% from the current price of $24.64. More detailed estimate data can be found on the Galapagos NV (GLPG) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Galapagos NV's (GLPG, Financial) average brokerage recommendation is currently 3.5, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Galapagos NV (GLPG, Financial) in one year is $38.57, suggesting a upside of 56.53% from the current price of $24.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Galapagos NV (GLPG) Summary page.
