Galapagos NV is winding down its cell and gene therapy (CGT) division after an unsuccessful attempt to sell the unit, becoming the latest biotech to retreat from a sector that has lost momentum after a period of intense investment.
The Belgian biotech said it will close its CGT division after failing to secure satisfactory offers, redirecting focus to pursuing “new transformational business”. The restructuring will lead to around 365 job losses across its sites in the Netherlands, Switzerland, the US and China.
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If implemented, Galapagos expects to incur €100–€125m ($115m-145m) in operation costs and €150–€200m in reconstruction costs by the end 2026.
The company says it remains open to offers for a partial or full acquisition of the CGT unit during the wind-down period.
This news underscores a larger trend of retrenched investment across the CGT industry, as companies confront steep manufacturing cost, scalability hurdles and uncertain commercial returns. The sector has seen sharp pullback in recent months with investment pivoting towards lower-risk, later-stage programmes.
On 10 October, Novo Nordisk abandoned its R&D cell therapy division, laying off about 250 employees and halting programmes targeting Parkinson’s disease, chronic heart failure, and Type 1 diabetes.
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By GlobalDataJapanese pharma Takeda also abandoned its cell therapy research, in a surprise U-turn towards small molecules, biologics and antibody-drug conjugates (ADCs).
Meanwhile, Gilead Sciences’ Kite Pharma terminated its collaboration with Shoreline, ending a research partnership for off-the-shelf cell therapies that was valued at over $2.3bn.
Despite a surge of innovation in the CGT space, many companies have struggled to match scientific progress with scalable, efficient manufacturing. Analysts note that the high cost and complexity of CGT – combined with regulatory uncertainty and commercial hesitancy – have dampened industry investment, prompting a shift toward more established models of clinical development.
Not all doom and gloom
Despite the roadblocks, CGT remains one of the fastest-growing areas of pharmaceutical research. According to a September 2025 report published by GlobalData, the parent company of Pharmaceutical Technology, the global CGT market is estimated to worth around $79bn by 2030.
The report calls for greater collaboration between regulators and industry to help smooth the path to market, as well as utilisation of contract development and manufacturing organisations (CDMO) to ensure access to the highest-quality materials throughout development.
UK multinational AstraZeneca signed a deal worth up to $555m for Algen Biotechnologies’ artificial intelligence (AI)-driven gene-editing platform and Abbvie bought Capstan for $2.1bn back in July to bolster its CAR-T pipeline, signalling confidence in the CGT market.
