12:21 PM EDT, 03/28/2024 (MT Newswires) -- Galapagos (GLPG) remains "a value trap and relative underperformer" with no near- or medium-term fix, BofA Securities said in a note Thursday.

Analysts said Galapagos' enterprise value has stayed low around negative $1.5 billion to negative 2 billion for over two years. The company's main cancer treatments will take three to four years to reach the market, burning cash and facing tough competition.

Also, its focus on buying early-stage projects means investors might not see the stock's value rise until there is a clearer plan for growth, the analysts said.

Galapagos is a late mover in the chimeric antigen receptor-T cell therapy market to treat blood cancers. These therapies may be quicker to produce, but competitors may solve supply issues before the company can enter, the analysts said. The analysts expect smaller sales forecasts for the company's CAR-T treatments, around 15% to 25% lower in the future.

The investment firm downgraded the pharmaceutical to underperform from neutral and cut its price objective to $31 from $41.

Galapagos shares fell nearly 3% in recent trading activity.

Price: 32.01, Change: -0.94, Percent Change: -2.87