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Galapagos To Spin Off Innovative Medicines Business

1. Galapagos plans to spin off its innovative medicines division by mid-2025. 2. New entity SpinCo will focus on oncology, immunology, and virology. 3. Galapagos to reduce workforce by 40%, impacting around 300 jobs in Europe. 4. Gilead Sciences will hold about 25% in both Galapagos and SpinCo. 5. Shareholders will receive SpinCo shares proportionally based on current holdings.

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FAQ

Why Bullish?

The spin-off could unlock shareholder value, potentially improving stock performance. Similar corporate restructuring often leads to positive market reactions.

How important is it?

The restructuring and focus on high-value therapies significantly impact Galapagos' market positioning and potential growth.

Why Long Term?

The separation aims for sustainable growth, which may take time to materialize. Past examples show that strategic spinoffs typically enhance long-term valuation.

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