Evotec Stock: Struggles Persist Despite Strategic Shifts

German biotech firm Evotec continues to face financial headwinds, reporting a 5% revenue decline to €371 million in the first half of 2025. Its core business—drug discovery and preclinical development—plummeted by 11%, attributed to weak market demand. While its biologics subsidiary grew 16%, it failed to offset overall losses. Cost-cutting measures, including site closures and portfolio reductions, have fallen short, with adjusted EBITDA worsening to -€1.9 million. Analysts remain cautious, though some retain optimistic price targets.

Glimmers of Hope Amid Challenges

The company pins hopes on a pending €300 million sale of its Toulouse facility and strategic partnerships, including milestone payments from a major pharma collaborator. Management reaffirmed its full-year revenue forecast of €760–800 million but acknowledged a recovery in core operations may not materialize until 2026. Despite the bleak figures, shares rose 2.5%, reflecting investor patience with the turnaround plan.