Faisal Khurshid, an analyst from Leerink Partners, maintained the Hold rating on Galapagos (GLPG – Research Report). The associated price target remains the same with $24.00.
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Faisal Khurshid’s rating is based on Galapagos’ recent strategic decisions and ongoing restructuring efforts. The company reported its 4Q24 earnings and announced plans to split into two separate entities: one focusing on their CAR-T platform and another, SpinCo, that will manage most of the cash balance and pursue business development opportunities. Khurshid is cautious about the feasibility of their CAR-T manufacturing platform and believes that more clarity is needed on SpinCo’s business development strategy before becoming more optimistic about the company’s prospects.
Galapagos has decided to prioritize its CD19 CAR-T program, GLPG5101, while deprioritizing other projects including their TYK2 programs and a second CD19 CAR-T asset, GLPG5201. The focus on GLPG5101, especially in expanding its indications, shows a clear path forward with anticipated pivotal studies in 2026 and a potential launch in 2028. However, the uncertainty surrounding the restructuring and the execution of their strategic plans has led to the Hold rating.
In another report released on February 13, RBC Capital also maintained a Hold rating on the stock with a $32.00 price target.