Sector News

Galapagos, following Sanofi’s playbook, offloads French R&D site to drug discovery CRO

April 7, 2023
Life sciences

Galapagos is taking a leaf out of the Sanofi playbook for offloading unwanted French R&D units. Seeking to slim down to execute its new strategy, the Belgian biotech has struck a deal to transfer a facility on the outskirts of Paris to the drug discovery contract research organization (CRO) NovAliX.

The 6,753 square meter facility in Romainville, France is Galapagos’ second largest by headcount, trailing only its headquarters in Mechelen, Belgium. At the end of last year, the biotech employed 254 people at the French site, all of whom were represented by a labor union and/or covered by a collective bargaining agreement. The lease on the facility is set to expire in 2027.

Mass layoffs in France are covered by labor laws that complicate the process for companies. To bypass those complications, Sanofi has previously opted to offload rather than close facilities, handing sites to the CRO Evotec in 2015 and 2018. Now, Galapagos has gone down the same route.

“As a result of the acquisition, Galapagos’ employees in Romainville who are exclusively dedicated to the operation of these activities will be transferred to NovAliX who is dedicated to assuming all ongoing research and discovery activities in Romainville,” Galapagos wrote in a statement.

In return, Galapagos is “committed to utilizing the research capabilities and expertise of NovAliX through a five year-collaboration and within the context of the company’s R&D portfolio.” The Belgian biotech factored the financial impact of the deal into its previous 2023 cash burn forecast of up to €420 million ($457 million). Galapagos expects the transaction to close in July.

Paul Stoffels, M.D., who took over as CEO and chairman of Galapagos last year, framed the deal as part of the pivot in R&D strategy that he outlined late last year. At the time, Galapagos said it planned to reduce its headcount by approximately 200 positions across its sites in Europe.

By Nick Paul Taylor

Source: fiercebiotech.com

comments closed

Related News

April 26, 2024

Former Bristol Myers CEO tapped as Novartis’ next board chair

Life sciences

Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.

April 26, 2024

GE HealthCare launches voice-activated, AI-powered ultrasound machines for women’s health

Life sciences

GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.

April 26, 2024

Scientists reveal new method that could reduce waste from drug manufacturing

Life sciences

Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.

How can we help you?

We're easy to reach