Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 78

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 3
Chunk 78
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 own ordinary shares, including shares in the form of ADSs, of both our company and SpinCo. This ownership overlap could create, or appear to create, potential conflicts of interest when our management and Directors and SpinCo’s management and Directors face decisions that could have different implications for the two companies. For example, potential conflicts of interest could arise in connection with the resolution of any dispute between us and SpinCo regarding the terms of the agreements governing the separation and the relationship between us and SpinCo. These agreements include the separation agreement, the option, license and collaboration agreement with Gilead (which will only apply to SpinCo following the proposed separation), and any commercial agreements between the parties or their affiliates. Potential conflicts of interest may also arise out of any commercial arrangements that we or SpinCo may enter into in the future.
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U.S. Federal Income Tax Consequences of Proposed Separation.
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The receipt by a U.S. holder of SpinCo ADSs in respect of Galapagos ADSs or shares in the proposed separation will be treated as a distribution to the U.S. holder under section 301 of the U.S. Internal Revenue Code for U.S. federal income tax purposes. As a result, U.S. holders receiving SpinCo ADSs in the proposed separation will be treated as receiving a taxable distribution from Galapagos in respect of their Galapagos ADSs or shares in an amount equal to the fair market value of the SpinCo ADSs received by such US shareholder in the proposed separation. The distribution will be treated as a dividend to the extent of Galapagos’ current and accumulated 

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earnings and profits, as determined under U.S. federal income tax principles. Furthermore, if we are a PFIC with respect to a U.S. holder, such U.S. holder could be subject to adverse U.S. tax consequences as a result of receiving a distribution from Galapagos as part of the proposed separation as described further below in “Item 10 E. Taxation - Certain Material U.S. Federal Income Tax Considerations to U.S. Holders - U.S. Federal Income Tax Consequences of Proposed Separation”. We believe that we were not a PFIC for our 2024 taxable year and prior taxable years. Further, we do not expect to be a PFIC for our 2025 taxable year. However, our status as a PFIC is a fact-intensive determination made on an annual basis, and we cannot provide any assurances regarding our PFIC status for