Image source: Galapagos NV
Long-suffering investors in Galapagos NV (GLPG) may finally have a reason to be optimistic.
The Belgian biotech announced Wednesday that Paul Stoffels, former Chief Scientific Officer of Johnson & Johnson (JNJ), will become CEO of Galapagos effective April 1, 2022.
Stoffels takes the helm from Onno van de Stolpe, who co-founded Galapagos in 1999 and whose retirement was announced last August. Van de Stolpe led the company through its initial public listing on Euronext in 2005, a Nasdaq listing in 2015 and its first product launch of Jyseleca, approved for the treatment of rheumatoid arthritis in the EU and Japan since 2020 and the treatment of ulcerative colitis in the EU since last year.
Fall from grace
Image source: BigCharts
Two years ago, GLPG stock was riding high, cresting at $274.03 in February 2020. Since then, the company has hit a wall with the US FDA, which rejected Jyseleca as a rheumatoid arthritis treatment, citing concerns over the high dosage and the drug's impact on sperm count.
Investors have watched the stock fall to $53.32 at Wednesday's close, down over 80% since its peak, remaining hungry for positive developments.
Investment thesis
- The naming of Stoffels as the new CEO adds what investors hope will be a key driver for Galapagos. Prior to being J&J's Chief Scientific Officer, he was worldwide Chairman Pharmaceuticals of J&J, which under his leadership launched 25 innovative medicines, including blockbusters such as Darzalex for multiple myeloma and Imbruvica for chronic lymphocytic leukemia (CLL) / and small lymphocytic lymphoma (SLL).
- Galapagos still has a long-term R&D collaboration with Gilead (GILD) in place that runs through 2029.
- Jyseleca continues to gain market share in Europe.
- $5.5 billion in cash on the balance sheet as of Sept. 30, 2021.
- Differentiated clinical portfolio.
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Source: Equities News
