Evotec SE ended the half year with a decline in revenue and an operating loss. However with a reorganisation and spending cuts underway, the company expects a recovery in earnings by 2028. Group revenue in the first half year was €371.2 million, down by 5% from a year earlier while the operating loss was €47.8 million. The loss was less than the year-earlier shortfall of €122.8 million, but still reflected weak demand for the company’s traditional services. Group revenue for the year is expected to be in a range of €760 to €800 million compared with €797 million in 2024.
In response, Evotec has reset its strategy to focus on drug discovery using its expertise in molecular biology. Findings from these projects can then be developed into new drugs in partnership with other companies. There will be a “sharper focus” to the strategy, Christian Wojczewski, the chief executive, told analysts on 13 August.
Examples of successful ongoing projects are collaborations with Bristol Myers Squibb Co in protein degradation and neuroscience, and a project led by Kidney Research UK to discover new treatments for acute kidney injury. Evotec will bring its molecular patient database to the project.
Going forward, the company has classified its revenue stream into two groups. These are discovery and preclinical development and manufacturing. The manufacturing segment, Just-Evotec Biologics, has sites in Redmond, Washington, US, and Toulouse, France. On 30 June, the company announced plans to sell the Toulouse plant to Sandoz, the Switzerland-based generics and biosimilars producer. The deal has been valued at about $300 million.
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