Belgian biotech Galapagos (NASDAQ:GLPG) announced a major restructuring drive on Wednesday, with plans to amend its 10-year collaboration with Gilead (NASDAQ:GILD) as part of its intention to create a new publicly traded entity focused on innovative medicines.

Alongside plans to spin out a new company, the Belgian drugmaker said it will cut some 300 positions, or about 40% of its current workforce.

The beleaguered Belgian firm Galapagos is splitting itself into two companies, with the brandname biotech prioritizing oncology.

Galapagos will gain full development and commercialization rights to its pipeline, and is subject to single digit royalty payments to Gilead on the sales of certain products.