Summary: RBC Capital raised its price target on Galapagos NV (NASDAQ:GLPG) to $33.00 from $32.00 and left its Sector Perform rating unchanged. The stock is trading at $34.56, already above the newly issued target, and has advanced 27.5% over the trailing 12 months. The firm pointed to the company’s continued pursuit of business-development options amid internal reorganization, and noted that program-level data will guide decisions on parts of the pipeline.
RBC’s update reflects model revisions rather than a change in recommendation. The analyst emphasized that Galapagos is actively searching for potential deals while completing an internal restructuring process. Part of that repositioning includes winding down the cell therapy platform, where the company is using results from the 3667 Tyk2 program to inform next steps for the asset.
The firm also flagged industry-wide dynamics that could complicate dealmaking. RBC noted an evolving biotech landscape characterized by rising valuations and an opening IPO window that may create headwinds for certain transaction types. At the same time, the analyst said Galapagos benefits from having both time and cash resources available to evaluate opportunities.
According to InvestingPro data cited by the analyst, Galapagos carries more cash than debt on its balance sheet, giving management financial flexibility to pursue potential collaborations or acquisitions. The note indicated management appears to be conducting active due diligence with the aim of materializing a transaction, but that visibility into any concrete opportunity remains limited at present.
RBC added that shares will likely continue to trade at a discount to cash on hand - cash in which Gilead Sciences effectively has a stake - until there is clearer visibility on future options or any amendments to the collaboration agreement. The uplift in the price target was attributed to updates to the firm’s financial model.
InvestingPro’s analysis also signaled the stock looks undervalued, and additional context is available through that platform’s Pro Research Report covering GLPG and more than 1,400 other U.S. equities.
Quarterly results: Galapagos reported fourth-quarter 2025 earnings that beat analyst expectations. The company posted earnings per share of 0.0239 USD versus a forecasted -0.2039 USD. Revenue for the quarter was 91.27 million USD, above the anticipated 77.83 million USD.
A material component of the quarter’s revenue was collaboration income related to the partnership with Gilead Sciences: the company recognized €900.2 million in collaboration revenue during the quarter, contributing to €1.11 billion recorded from the collaboration across fiscal year 2025.
Following the earnings release, Raymond James reiterated a Market Perform rating on Galapagos. That firm’s view was recorded after the company published its fourth-quarter results.
Implications for investors: The combination of a modest target increase from RBC, positive quarterly results and substantial collaboration revenue provides a clearer picture of Galapagos’s near-term financial position and strategic partnerships. Nonetheless, the stock’s premium to the updated target and lingering questions around potential business-development outcomes leave near-term valuation uncertainty.
Key points
- RBC raised its price target on Galapagos to $33.00 from $32.00 while maintaining a Sector Perform rating; the stock trades at $34.56, above the new target.
- Management is pursuing business-development opportunities and performing active due diligence while executing an internal restructuring and winding down a cell therapy platform pending 3667 Tyk2 data.
- Galapagos reported Q4 2025 EPS of 0.0239 USD and revenue of 91.27 million USD, including €900.2 million in collaboration revenue tied to its partnership with Gilead; annual collaboration revenue recognized was €1.11 billion for fiscal 2025.
Risks and uncertainties
- Industry conditions - Rising biotech valuations and an opening IPO window could complicate transaction dynamics and deal pricing, potentially affecting M&A or partnership outcomes.
- Visibility on deals - Although management is conducting due diligence, there is limited clarity about whether or when a material business-development opportunity will be completed, leaving valuation dependent on future announcements.
- Market pricing - Shares are trading above RBC’s updated target and may remain discounted to cash on hand until there is greater transparency on collaboration amendments or prospective transactions.
The details above are drawn from the analyst note and the company’s publicly reported fourth-quarter 2025 results. Together they outline Galapagos’s current financial footing and the strategic decisions that will determine its near-term trajectory.