Evotec AG Reports Strategic Shift Amid Mixed Performance

Evotec Ag (Adr) ( (EVO) ) has released its Q3 earnings. Here is a breakdown of the information Evotec Ag (Adr) presented to its investors.

Evotec AG is a prominent biotechnology company specializing in drug discovery and development services, operating primarily in the pharmaceutical and life sciences sectors, with a focus on innovative therapeutic solutions.

In its latest earnings report for the first nine months of 2025, Evotec AG highlighted a strategic shift in its revenue mix aimed at fostering long-term profitable growth. Despite a challenging market environment for its Discovery & Preclinical Development (D&PD) segment, the Just-Evotec Biologics (JEB) division has exceeded expectations, contributing to a more balanced performance.

The company reported a 7.1% decrease in group revenues to €535.1 million, largely due to a 12.3% drop in the D&PD segment. However, the JEB segment showed robust growth with an 11.3% increase in revenues, driven by strong non-Sandoz and non-Department of Defense business growth. Evotec also made significant strides in its strategic collaborations, including a notable agreement with Sandoz, potentially worth over US$650 million, and advancements in its partnerships with Bristol Myers Squibb.

Cost reduction initiatives are on track, expected to save over €60 million in 2025, although adjusted Group EBITDA showed a loss of €16.9 million, impacted by underutilization and high fixed costs in the D&PD segment. The company remains committed to its strategic priorities, with confirmed guidance for 2025 and an optimistic outlook for 2028, targeting a compound annual growth rate of 8-12% in group revenues.

Looking ahead, Evotec AG maintains a positive outlook, with management reaffirming its 2025 guidance and expressing confidence in achieving its long-term growth targets by 2028, underscoring the company’s resilience and strategic focus in navigating the evolving biotechnology landscape.