Pharma group Galapagos picks new CEO, backtracks on spinoff

(Reuters) -Pharmaceutical firm Galapagos has appointed Henry Gosebruch as its new CEO as it steers away from a plan to split into two listed entities, it said on Tuesday.

The Amsterdam-listed group, headquartered in the city of Mechelen in Belgium, had said in January it planned the spinoff of its innovative medicines business to have effect by mid-2025, and that it would provide around 2.45 billion euros ($2.72 billion) of cash for the new entity.

Galapagos said on Tuesday that it would reevaluate the split following regulatory and market developments and would explore all strategic options for its business transformation.

"We are currently evaluating strategic options regarding our clinical programs and other assets," the new CEO said in a company statement. "In parallel, we will pursue transformative business development opportunities in order to build an innovative pipeline."

Gosebruch, a director of the board since 2022, will take the helm with immediate effect, the group said in the statement, after its previous CEO and Chairman Paul Stoffels announced in April he would retire from the posts.

Jerome Contamine has been appointed Chair of the Board, the group added.

Galapagos' stock has declined since late 2020, after the group decided not to pursue the U.S. Food and Drug Administration's approval of its experimental rheumatoid arthritis treatment.

The group said in January it expected its reorganization to lead to the reduction of around 300 positions in Europe, or around 40% of its workforce.

($1 = 0.8998 euros)

(Reporting by Alessandro Parodi in Gdansk, editing by Christian Schmollinger)