Evotec’s Strategic Overhaul Fails to Impress Investors

The launch of Evotec’s “Horizon” restructuring plan was intended to signal a new beginning. Financial markets, however, have delivered a starkly different verdict. In the week following the early March announcement, the company’s shares plummeted by nearly 23%, marking the steepest decline within the TecDAX index during that period. This sell-off has driven the stock price to a fresh five-year low.

A Disappointing Forecast Sours Sentiment

Central to the market’s negative reaction is the company’s financial guidance for 2026. Evotec anticipates an adjusted EBITDA ranging from zero to €40 million, a figure that falls dramatically short of the over €80 million forecast by analysts. This substantial gap has severely undermined confidence in the ongoing corporate transformation. Chief Executive Christian Wojczewski has characterized the current year as transitional, expressing hope for a stabilization in the Drug Discovery and Partnership Development (DMPD) market in the latter half of the year.

Internally, the company’s performance presents a divided picture. While the Biologics division reported robust growth of 40% in 2025, the Discovery business contracted by 13%. This widening divergence highlights the uneven progress of Evotec’s strategic shift across its different units.

Should investors sell immediately? Or is it worth buying Evotec?

Analyst Opinions Remain Sharply Divided

Market experts are split on the stock’s future trajectory. Fynn Scherzler, an analyst at Deutsche Bank, downgraded his price target to €4.50, describing the company’s medium-term objectives as ambitious. In contrast, RBC analyst Charles Weston views the “Horizon” plan as a necessary step. He maintains an “Outperform” rating with a €10.00 price target, despite acknowledging disappointment regarding the weak EBITDA outlook. Among the nine analysts surveyed by Bloomberg, the average price target stands at €7.20, with five recommending a “Buy.”

The “Horizon” Plan in Detail

The new operational model involves consolidating Evotec’s global footprint to ten core sites and reducing its workforce by up to 800 positions. Management aims to achieve annualized cost savings of approximately €75 million by the end of 2027. Implementing this plan is expected to incur restructuring costs of around €100 million between 2026 and 2028. The company’s medium-term target is to generate revenues exceeding one billion euros with a 20% EBITDA margin by 2028, indicating that a return to profitability is still two years away.

All eyes are now on Evotec’s final 2025 results, scheduled for release on April 8. Investors will scrutinize whether the initial cost-saving measures are taking effect as planned and if the Biologics unit can sustain its current momentum. These two factors will be critical in determining the credibility of the entire transformation strategy.