Company: GLPG
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001558370-25-003806
Chunk: 267

Company: GALAPAGOS NV
Filing Date: 2025-03-27
Form: 20-F
Item: Item 7
Chunk 267
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 entered into a separation agreement to restructure our existing relationship. Under this agreement, we intend to transfer, by way of a partial demerger to be effected in accordance with the relevant provisions of the Belgian Companies and Associations Code, a portion of our current cash balance (along with certain other assets and liabilities) into a new entity, SpinCo. Our existing shareholders will receive shares in SpinCo in the same proportion as their shareholdings in Galapagos as of a record date to be established. SpinCo will focus on identifying and investing in innovative medicines with robust demonstrated proof-of-concept in oncology, immunology, and/or virology through strategic business development transactions. Completion of the separation is contingent upon the approval of the partial demerger by an Extraordinary Shareholders’ Meeting of Galapagos, as well as certain other customary conditions. The separation is expected to occur by mid-2025.
As further described above under “Global research and development collaboration”, the option, license and collaboration agreement, as amended, will be assigned to SpinCo in the framework of this intended separation. Gilead has furthermore agreed to waive its rights under the option, license and collaboration agreement with respect to all of Galapagos' and its affiliates' small molecule research and development activities and programs.
We intend to apply for the admission of the shares of SpinCo to trading and listing on the regulated market of Euronext Brussels and Amsterdam, and Nasdaq (through American Depositary Shares (ADSs)).
Gilead has agreed to lock-up provisions and standstill restrictions in respect of both Galapagos and SpinCo, as described above under “Share subscription agreement”.
We will provide transitional services to SpinCo on a cost plus basis during a reasonable period after the separation to facilitate SpinCo's operations and allow it to operate on a stand-alone basis as soon as reasonably possible.
As part of the separation, we also agreed with Gilead that SpinCo will provide us with a financing backstop facility to support our operations post-separation.
On behalf of themselves and their affiliates, the parties to the separation agreement have waived, as from the date of said agreement, any and all rights, claims, and causes of action against each other, their affiliates, or agents, related to discussions or negotiations that took place prior to the date of the separation agreement. 
We will indemnify the former or current Independent Non-Executive Directors, Executive Directors, Officers, and members of the executive management of Galapagos for any losses, claims,