Jan 8 (Reuters) - Dutch pharmaceutical firm Galapagos

said on Wednesday it was planning to split into two

listed entities by mid-2025, creating a new company focused on

innovative medicines.

Galapagos will provide around 2.45 billion euros ($2.53

billion) of cash for the new entity, to be named at a later

date, it said in a press release.

"The proposed separation aims to help investors more easily

assess the merits, and future prospects of the two distinct

businesses, allowing them to invest in each company based on

their own strategy," Galapagos' finance chief Thad Huston said.

The plan is for both companies to be listed on Euronext.

The group's American partner and shareholder Gilead Sciences ( GILD )

will hold about 25% of the shares in both Galapagos and

the newly created firm following the split, Galapagos said.

The reorganization is expected to lead to the reduction of

around 300 positions in Europe, or around 40% of the group's

workforce, it added.

After the reorganization, the group expects its normalized

annual cash outflow to be between 175 million and 225 million

euros, excluding restructuring costs.

Shares in Galapagos rose 10.5% by 0806 GMT, touching their

highest price since mid-March last year.

The Galapagos stock has faced a strong devaluation since

late 2020, after the Dutch group decided not to pursue the U.S.

Food and Drug Administration's approval of its experimental

rheumatoid arthritis treatment.

($1 = 0.9678 euros)