The Belgian-Dutch biotechnology company Galapagos is acquiring two smaller companies involved in cell therapy for cancer patients. Galapagos buys the Dutch CellPoint, which is based in Oegstgeest, and Abound Bio of Pittsburgh (US).
The two biotechnology companies are working on a method to provide patients with, among other things, lymphoma more quickly and efficiently with CAR-T cells. These are genetically modified white blood cells of the patient themselves that can attack cancer cells. The method of CellPoint and Abound Bio is not yet on the market, but is at the stage of clinical studies.
Galapagos will initially pay EUR 125 million for CellPoint. The acquisition amount can amount to 225 million euros; the extra 100 million will be paid out if the company meets some (undisclosed) goals. CellPoint is a private company in which venture investor +ND Capital participates. Galapagos is paying USD 14 million (more than EUR 13 million) for the American company Abound Bio.
Also read: Will Paul Stoffels regain confidence in Galapagos?
rheumatism medicine
Analysts have long expected Galapagos to make acquisitions. The Belgian-Dutch company is trying to become less dependent on the rheumatism medicine Jyseleca, its only product with much commercial success. The drug is approved for the European and Asian markets, but not in the US. Drugs for other conditions have not (yet) entered the market, although the company invested many millions in the development.
In January 2022, the Belgian Paul Stoffels took over the management of Galapagos from the Dutch co-founder Onno van de Stolpe. Galapagos is working on new drugs, but it is expected to take at least another five years to bring a new drug to market.
Galapagos is well on the way to cash. In 2019, Van de Stolpe entered into an agreement with the American pharmaceutical company Gilead for an investment of 4.5 billion euros in Galapagos. For that amount, Gilead would benefit from future drugs. The deal was also a non-aggression pact: -Gilead wouldn’t take over Galapagos for at least the next ten years.
“With the transactions announced today, we position ourselves as a potential innovator in CAR-T, while laying a strong foundation from which to continue to innovate for patients with advanced cancer in need of new treatment approaches,” Paul Stoffels said in a press statement on Wednesday. . He promised to release a detailed update of the company’s strategy and portfolio “later this year.”
Investors seemed unimpressed by the two acquisitions on Wednesday. The Galapagos share, which is listed on the MidKap in Amsterdam, stood at 51.74 euros in the middle of the afternoon, a decrease of 5.5 percent compared to Tuesday’s closing price.