What happened
A changing of the guard is coming at biotech Galapagos (GLPG -0.29%), with the announcement of a new CEO. Investors were quite happy to hear this, and consequently the stock ended the day more than 22% higher.
So what
Belgium-based Galapagos announced Wednesday afternoon that it has tapped Paul Stoffels to be its next leader. The appointment is effective April 1.
Image source: Getty Images.
Stoffels replaces current CEO Onno van de Stolpe, who is also a co-founder of the company and is entering retirement after 23 years on the throne. van de Stolpe will remain in the post during a transition period culminating with Stoffels' ascension.
The incoming chief already has a high profile in the healthcare sector -- Stoffels was most recently chief scientific officer at Johnson & Johnson. Prior to that, he served as the American company's worldwide chairman of pharmaceuticals, and its global head of research and development.
In the press release announcing the appointment, Galapagos quoted Stoffels as waxing enthusiastic about "the entrepreneurial culture and unwavering commitment to innovation at Galapagos, its strong [research and development] capabilities, and growing commercial footprint."
Now what
While Stoffels' pedigree is impressive, investors are also likely cheered by the fact that he knows Galapagos well. He was involved in the company's founding, and served on its board of directors before joining Johnson & Johnson in 2002.
The new chief will certainly have his work cut out for him. After all, Galapagos' share price has generally been on a downward ride since August 2020.
That's when the biotech failed to garner Food and Drug Administration approval for its rheumatoid arthritis drug filgotinib, co-developed with partner (and current major shareholder) Gilead Sciences. The cancellation of the two companies' ziritaxestat pulmonary fibrosis drug program several months later only added to investor bearishness.
