Galapagos a dollar for fifty cents?

The share price has fallen further. From EUR 63 in April 2022 to EUR 22,86 January 2025.

For the price of EUR 23 per share, you get book value EUR 43,44 mostly cash. .. but the company is spending hundreds of millions on expenses and R&D and burning through about EUR 7 a year.

 Proposal is a split into 2 companies which shareholders get shares in.

"Spinco"  a sort of SPAC with money with which Gilead buys stuff. 

"Following the planned reorganization, Galapagos (itself not Spinco) expects its normalized annual cash burn to be between €175 million and €225 million, excluding restructuring costs. Upon separation, Galapagos expects to have approximately €500 million in cash." so a 2 year runway... 

...... As an outsider I would say do share buybacks to increase per share value... 

Conclusion: Very cheap, but a melting ice cube and thus still: Too difficult pile. 


Monday, April 11, 2022 notes

Galapagos after price dip

Galapagos is difficult to (e)valuate. At the beginning of 2020 the share price was EUR 235, I wrote:

Galapagos 2019: too difficult pile

Partnership with Gilead has brought in a lot of money around EUR 5b?
Galapagos has still been selling shares. The share price has doubled. I have no clue what the value could be per share. 

 https://sinaas.blogspot.com/2020/02/galapagos-2019-too-difficult-pile.html

Now the share price has fallen to EUR 63,- and book value is around EUR 40,- . The company is currently losing money, but may have a blockbuster profit in the future?