Evotec defies €16.9 million losses with bold 2025 growth forecast
Evotec, a German biotech company, is facing significant challenges but its leadership remains optimistic about its future prospects. Despite a dramatic collapse in its research and development division and substantial losses, Evotec is sticking to its 2025 forecast. Evotec's quarterly figures revealed a severe slump in its Core D&PD business, the company's most important segment. The company reported significant losses and a decline in revenue compared to the same period last year. Evotec's adjusted EBITDA losses widened to €16.9 million in the first nine months. However, Evotec's leadership is confident in the company's ability to turn things around. They have confirmed their 2025 guidance, expecting group revenues between 760 and 800 million euros. They also announced a significant deal with Sandoz worth over 650 million USD plus royalties, which brought an immediate $350 million and future payments and licensing fees. Evotec expects a mid-term annual growth rate of 8-12% with an adjusted EBITDA margin above 20% by 2028. To restore confidence, Evotec's management is implementing a share buyback program, repurchasing up to 290,000 shares worth a maximum of €3 million. Despite the challenges, Evotec's leadership is committed to its 2025 forecast. The company's strategic partnership with Sandoz has brought in significant funds, and Evotec expects to see a mid-term annual growth rate of 8-12%. However, investors are questioning whether the share buyback program can make a difference given Evotec's severe issues.
