Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 77

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 77
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 be subject to general business uncertainties and contractual restrictions while the proposed separation is pending, which could adversely affect our existing business and operations.
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In connection with the proposed separation, it is possible that some of our customers, partners, suppliers and other third parties with whom we currently or might potentially have a business relationship may delay or defer certain business decisions or seek to terminate, change or renegotiate their relationships with us as a result of the proposed separation, which could negatively impact our business and the respective businesses of the two companies following the separation. 
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The proposed separation also presents a number of risks to our internal processes, such as the risk of failure to maintain an adequate control environment due to changes to our infrastructure technology systems and financial reporting processes. If we cannot effectively transition the two companies to stand-alone systems and functions, we may experience disruptions to our business operations, which could have a material adverse effect on our business, financial condition and results of operations. In addition, our costs for the operations of these systems may be higher than the amounts historically reflected in our financial statements.
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The separation agreement provides that we are not prevented from considering and proceeding with any business combination, divestment, acquisition, financing, licensing or other business or commercial transaction except, however, until the completion of the separation, as agreed in relation to or pursuant to the option, license and collaboration agreement. Furthermore, pursuant to the separation agreement, we cannot take any actions prior to the completion of the proposed separation that would reasonably be expected to impair or delay the separation or the other transactions contemplated by the separation agreement in any material respect or that would have as a primary purpose to impair or be adverse to the rights of Gilead under the separation agreement or the other agreements contemplated to be executed by Gilead. The separation agreement also states that prior to the completion of the separation, we may commence with any third-party partnership and financing discussions with respect to our business, assets and programs that are not allocated to SpinCo in connection with the separation, provided, however, that any such partnerships or financing transactions do not take effect until after the completion of the separation, unless otherwise agreed to by the Parent Investor This may affect our ability to conduct our business and manage the foregoing uncertainties and restrictions.
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If the proposed separation occurs, certain members of our management, Directors and shareholders will hold shares in both our company and SpinCo, and as a result may face actual or potential conflicts of interest.
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If the proposed separation occurs, certain members of our management and Directors will