Evotec Ag Stock Price, News & Analysis

Evotec SE reported challenging H1 2024 results, with revenues down 7% year-on-year in Shared R&D Services. Just - Evotec Biologics showed strong growth with a 50% revenue increase. The company is implementing a priority reset for sustainable profitable growth, aiming for annualized savings of at least €40m in 2025. Key points include:

- Group revenues increased by 2% to €390.8m
- Adjusted Group EBITDA totaled €(0.5)m, impacted by high fixed costs
- New collaborations signed with various partners
- Dr Christian Wojczewski took over as CEO on July 1, 2024
- Headcount reduction of approximately 400 roles planned
- Full-year 2024 outlook: revenues expected €790-820m, adjusted EBITDA €15-35m

Evotec SE (Frankfurt Stock Exchange: EVT, NASDAQ: EVO) announced significant progress in its strategic partnership with Bristol Myers Squibb focused on developing molecular glue degraders. The collaboration, initiated in 2018 and expanded in 2022, has triggered performance-based and programme-based payments totaling US$ 75 million to Evotec. This partnership combines Evotec's multi-omics screening capabilities with Bristol Myers Squibb's library of cereblon E3 ligase modulators (CELMoDs™) to identify novel molecular glue degraders for oncology and other fields.

Dr. Cord Dohrmann, Evotec's Chief Scientific Officer, highlighted the growing pipeline of molecular degraders addressing high-value targets, emphasizing the potential to deliver multiple first-in-class products to the market. The collaboration's success underscores Evotec's progress in this emerging therapeutic modality.

Evotec SE announced significant progress in its strategic neuroscience partnership with Bristol Myers Squibb, resulting in a US$ 25 million payment to Evotec for further research advancement. The collaboration, initiated in December 2016, aims to develop disease-modifying treatments for neurodegenerative diseases. Evotec's PanOmics platform, combined with patient-derived disease models, has been instrumental in generating a promising pipeline of discovery to clinical-stage programmes.

A key milestone was reached with the in-licensing of EVT8683 (now BMS-986419) by Bristol Myers Squibb in September 2021. The partnership was extended for an additional 8 years in March 2023. Dr. Cord Dohrmann, Evotec's CSO, highlighted the productive nature of the collaboration and expressed excitement about advancing another programme towards clinical development in 2026.

Evotec SE (Frankfurt Stock Exchange: EVT, MDAX/TecDAX, NASDAQ: EVO) has announced it will release its financial results for the first half-year of 2024 on Wednesday, 14 August 2024. The company will host a conference call and webcast to discuss the results and provide a performance update. The event will be conducted in English.

Key details:

• Webcast: 14 August 2024, 2:00 pm CEST (1:00 pm BST, 8:00 am EDT)
• Conference call: Pre-registration required
• Slide presentation available for phone participants
• On-demand version will be accessible on Evotec's website

Evotec SE has updated its guidance for fiscal year 2024, reflecting challenges in the first half of the year. The company now expects:

• Revenues of €790-820 million (low to mid-single-digit percentage growth)
• R&D expenditures of €50-60 million (low double-digit percentage reduction)
• Adjusted EBITDA of €15-35 million (mid-double-digit percentage reduction)

The Shared R&D segment faced a challenging environment, while Just - Evotec Biologics saw mid-double-digit revenue growth. The company is implementing measures to reset operational priorities, focusing on sustainable profitable growth and right-sizing its business. Annualized recurring benefits on adjusted EBITDA are expected to exceed €40 million. Evotec is evaluating additional strategic steps and developing a new mid-range plan.

Evotec SE (NASDAQ: EVO) has updated its fiscal year 2024 guidance. The company now expects:

• Group revenues of €790-820 million (low to mid-single-digit percentage growth, down from previous low double-digit growth)
• R&D expenditures of €50-60 million (low double-digit percentage reduction)
• Adjusted EBITDA of €15-35 million (mid double-digit percentage reduction, down from previous mid double-digit growth)

The guidance revision is due to slower sales order conversion and continued margin pressure from high fixed costs. Evotec is implementing actions to transform the business towards sustainable profitable growth.

Evotec SE has entered into a multi-year collaboration with Pfizer to advance early discovery research for metabolic and infectious diseases. The research will be conducted at Evotec's French facilities, including Campus Curie in Toulouse. Evotec will receive research support funding from Pfizer and may earn milestones and royalties based on the program's success. This partnership aims to leverage Evotec's extensive research capabilities and Pfizer's commitment to fostering new therapeutic approaches. Both companies highlight the strong biopharmaceutical ecosystem in France as a important factor in their collaboration.

Just - Evotec Biologics, a segment of Evotec, has expanded its strategic partnership with Sandoz, focusing on the development and commercial manufacturing of biosimilars. This agreement, announced on July 8, 2024, ensures long-term commercial supply security for Sandoz from Evotec's newly built J.POD® manufacturing facility in Toulouse, France. The extended partnership promises remuneration for early scientific validation and additional funding upon reaching development milestones from 2025. Since May 2023, the collaboration has leveraged Just - Evotec Biologics' data-driven design and continuous manufacturing technology to enhance product quality and cost efficiency. Dr. Matthias Evers, Evotec's Chief Business Officer, highlighted the potential to improve patient access to medicines and validate the strategic establishment of their second J.POD® facility.

Evotec SE's subsidiary, Just - Evotec Biologics, has been selected by the U.S. Department of Defense (DOD) to develop an accelerated monoclonal antibody (