A fresh oncology partnership has once again underscored the yawning gap between Evotec’s research engine and the cold arithmetic of its income statement. The Hamburg-based drug discovery partner announced a collaboration with Plectonic Biotech on 2 September to develop T-cell-engaging approaches for solid tumours, pairing Plectonic’s LOGIBODY technology with Evotec’s own BiTco platform. The news nudged the shares higher on the day, but the relief proved fleeting — the stock closed Friday at €3.23, barely 3.0 percent above its 52-week low of €3.14.
That leaves the equity down 41 percent since the start of the year and roughly 58 percent below the €7.75 peak touched in early November. The market capitalisation now stands at €581.77 million.
The Weight of a Slashed Outlook
Investors have had little appetite for pipeline headlines since mid-August, when Evotec confirmed its first-half figures and dramatically cut its full-year guidance. Revenue is now expected at €570–610 million, down from the previously flagged €700–780 million, while adjusted EBITDA guidance has swung from around breakeven to a loss of €70–105 million. Management attributes roughly 40 percent of the revenue reduction to milestone payments and project phases deferred by existing partners, with the corresponding income now not expected until 2027.
The first-half numbers themselves make for grim reading. Group revenue fell 19.2 percent year on year to €300.1 million, with the second quarter contributing around €143.5 million. Adjusted EBITDA came in at roughly minus €42.7 million for the half, including a minus €20.8 million second quarter. Evotec ended June with liquidity of €465.6 million. Since the guidance confirmation just over a week ago, the shares have shed a further 3.7 percent.
Not Every Division Is Flagging
The weakness is not universal. Revenue in the Discovery & Preclinical Development segment climbed more than 28 percent year on year in the first half, and the Just-Evotec Biologics unit is reporting strong capacity utilisation and a broadening customer base. The problem is that these bright spots are being swamped by the broader contraction.
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The research side, at least, remains busy. The Plectonic deal follows an August tie-up with US-based Odyssey Therapeutics, under which Evotec is contributing its data platform, screening capabilities and AI technologies to autoimmune and inflammation programmes — a partnership that has so far done little for the share price, which has slipped 6.3 percent since its announcement. In May, Evotec nominated the first preclinical development candidate from a dermatology collaboration with Almirall, claiming a timeline well ahead of industry norms. April brought two new research grants from the Gates Foundation for tuberculosis drug discovery.
While Evotec’s scientific milestones continue to arrive, the market’s focus has shifted firmly to the bottom line — a reminder that promising research alone doesn’t protect a business from financial strain. The same principle applies to workplace safety: even the most diligent teams can face serious consequences when their risk documentation isn’t up to date. A free toolkit with 41 ready-to-use templates and checklists helps you document hazards properly and stay compliant. Download the free Risk Assessment Toolkit
A Boardroom Exit Adds to the Gloom
There has also been movement in the supervisory board. Camilla Macapili Languille, an independent member since June 2022 who sat on the Audit & Compliance Committee, resigned with effect from 7 August. The shares have lost 7.0 percent in the month since her departure.
The pattern is consistent: scientific validation continues to flow in, yet each fresh alliance or grant is met with a shrug from a market fixated on the deteriorating profit outlook. Whether the operational picture stabilises in the second half may only become clear with the third-quarter report expected this autumn. Until then, the stock looks likely to keep testing the patience — and the floor — of its holders.
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