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1. Company Snapshot

1.a. Company Description

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide.The company is developing pharmaceutical products in various therapeutic areas, such as diabetes and complications of diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women's health.It has collaboration agreements with Bayer AG; Lilly; Chinook Therapeutics; Novo Nordisk A/S; Galapagos; Pfizer Inc.; CONBA Pharmaceutical Co., Ltd.; Bristol Myers Squibb Company; Zhejiang JingXin Pharmaceutical Co., Ltd; Kazia Therapeutics; Apeiron Biologics; and Takeda Pharmaceuticals.


The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019.Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.

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1.b. Last Insights on EVT

Evotec SE's recent performance faces challenges due to adjustments in revenue guidance, despite confirming profit guidance. The company cited a more profitable revenue mix and strong demand for its platforms. However, a potential sale of its Just-Evotec Biologics Toulouse site to Sandoz AG may impact its business operations. Additionally, Evotec's participation in the NURTuRE-AKI consortium to investigate acute kidney injury may not have a short-term impact. Its H1 2025 results showed strong progress on strategy execution, but investors are cautious.

1.c. Company Highlights

2. Evotec's Q3 2025 Earnings: A Mixed Bag

Evotec SE reported a 7% decline in Group revenues to EUR 535.1 million for the first 9 months of 2025, with adjusted Group EBITDA coming in at negative EUR 16.9 million. The company's EPS was reported at '-0.24', missing estimates of '-0.1325'. The revenue decline was largely driven by a 12% drop in its Discovery & Preclinical Development (D&PD) business, while Just-Evotec Biologics (JEB) showed a strong 11% increase in revenues to EUR 143.2 million. The company's guidance for 2025 remains unchanged, with a targeted revenue of EUR 760 million to EUR 800 million and an expected adjusted EBITDA in the range of EUR 30 million to EUR 50 million.

Publication Date: Nov -21

📋 Highlights
  • Group Revenue Decline:: 7% drop to EUR 535.1 million for Q1-Q9 2025, driven by 12% D&PD revenue decline.
  • JEB Revenue Growth:: Just-Evotec Biologics revenue increased 11% to EUR 143.2 million, with growth expected to accelerate.
  • Sandoz Deal Impact:: Transformational agreement unlocking >$650 million in payments and EUR 300 million from Toulouse site sale.
  • Cost Optimization:: EUR 60 million in 2025 cost cuts, with an additional EUR 50 million targeted for productivity improvements.
  • Pipeline Progress:: 2 assets moving to Phase II in 2025, with EUR 500 million in expected returns by 2028 and EUR 16B in non-risk-adjusted milestones.

Segment Performance

The D&PD segment's decline was attributed to the soft early drug discovery market, while JEB's growth was driven by its strong biologics capabilities. The company's AI-supported platforms, particularly its NAMs capabilities, are gaining traction, with increasing interest from pharma companies to integrate these tools early in the drug discovery process. Analysts estimate next year's revenue growth at 7.1%, indicating a potential recovery in the D&PD segment.

Strategic Partnerships and Pipeline Progress

Evotec's business momentum with strategic partnerships remains healthy, with several catalysts expected to drive the transition of molecules into preclinical and clinical stages. The company's pipeline has progressed significantly in 2025, with over 100 projects underway, 12 beyond discovery stages, and 2 assets moving from Phase I to Phase II clinical development. The Sandoz deal is expected to unlock payments of more than $650 million and sizable revenues from royalty streams related to 10 biosimilars.

Valuation and Outlook

Evotec's valuation metrics indicate a mixed picture, with a P/E Ratio of -5.91, P/B Ratio of 1.09, and P/S Ratio of 1.18. The company's EV/EBITDA is -13.3, indicating a significant discount to its earnings. With a revenue CAGR of 8-12% and EBITDA margins greater than 20% expected by 2028, the company's mid-term outlook appears promising. However, the current market environment remains uncertain, especially in biotech, with 30-40% of D&PD revenue exposed to this sector.

3. NewsRoom

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Is Evotec SE (EVO) One of the Best Debt-Free Penny Stocks to Buy Right Now?

Jan -18

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Evotec (XTRA:EVT) Valuation Check After Recent Short Term Share Price Momentum

Jan -12

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Has The Recent Rebound In Evotec (XTRA:EVT) Reset Market Expectations?

Jan -11

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Just - Evotec Biologics Receives Grant for AI-Driven Optimization of Monoclonal Antibody Developability for Affordable Access

Jan -08

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Evotec Appoints Dr. Sarah Fakih as EVP, Head of Global Communications and Investor Relations

Jan -02

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Evotec Closes Sale of Just - Evotec Biologics' Toulouse Site to Sandoz

Dec -08

Source: accessnewswire.com

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Evotec-Partner Bayer Starts Phase 2 Study for Treatment of Patients with Alport Syndrome

Dec -04

Source:

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Evotec Receives Milestone Payment from Bristol Myers Squibb Following IND Acceptance in Strategic Protein Degradation Partnership

Nov -12

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.66%)

6. Segments

EVT Execute

Expected Growth: 15.4%

EVT Execute's AI-driven drug discovery and development platform is poised for growth driven by increasing adoption of AI in pharmaceutical R&D, rising demand for novel drug candidates, and Evotec SE's strong partnerships with leading biopharma companies.

EVT Innovate

Expected Growth: 10.3%

EVT Innovate's strategic partnerships and collaborations accelerate innovation in biotechnology and pharmaceuticals, driving growth. Increasing demand for novel therapies, advancements in gene editing, and rising investments in R&D fuel the segment's expansion.

7. Detailed Products

Drug Discovery

Evotec SE's drug discovery platform provides a comprehensive range of services, including target identification, hit identification, lead optimization, and candidate selection.

Development Services

Evotec SE's development services provide a comprehensive range of services, including process development, analytical development, and formulation development.

Manufacturing Services

Evotec SE's manufacturing services provide a comprehensive range of services, including small molecule API manufacturing, biologics manufacturing, and fill-finish services.

Research Services

Evotec SE's research services provide a comprehensive range of services, including assay development, high-throughput screening, and protein production.

Data-Driven R&D

Evotec SE's data-driven R&D platform provides a comprehensive range of services, including data analytics, artificial intelligence, and machine learning.

Oncology

Evotec SE's oncology platform provides a comprehensive range of services, including target identification, lead optimization, and candidate selection for oncology-related diseases.

Neuroscience

Evotec SE's neuroscience platform provides a comprehensive range of services, including target identification, lead optimization, and candidate selection for neuroscience-related diseases.

8. Evotec SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Evotec SE operates in a highly competitive industry, and there are many substitutes available for its services. However, the company's strong brand reputation and high-quality services help to differentiate it from its competitors.

Bargaining Power Of Customers

Evotec SE's customers are primarily pharmaceutical and biotechnology companies, which have limited bargaining power due to the specialized nature of the company's services.

Bargaining Power Of Suppliers

Evotec SE relies on a network of suppliers for its research and development activities. While the company has some bargaining power due to its size and reputation, its suppliers also have some bargaining power due to the specialized nature of their products and services.

Threat Of New Entrants

The biotechnology industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This makes it difficult for new entrants to compete with established companies like Evotec SE.

Intensity Of Rivalry

The biotechnology industry is highly competitive, with many established companies competing for market share. Evotec SE faces intense competition from companies like Charles River Laboratories and WuXi AppTec.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.86%
Debt Cost 3.95%
Equity Weight 64.14%
Equity Cost 9.78%
WACC 7.69%
Leverage 55.92%

11. Quality Control: Evotec SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kamada

A-Score: 5.2/10

Value: 4.3

Growth: 5.7

Quality: 6.8

Yield: 3.1

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Alliance Pharma

A-Score: 4.0/10

Value: 4.9

Growth: 2.9

Quality: 3.8

Yield: 1.9

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
InterCure

A-Score: 3.1/10

Value: 7.4

Growth: 2.3

Quality: 2.7

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Benchmark

A-Score: 2.8/10

Value: 6.4

Growth: 2.3

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Probi

A-Score: 2.7/10

Value: 0.6

Growth: 3.0

Quality: 4.6

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Evotec

A-Score: 2.2/10

Value: 6.6

Growth: 3.3

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.94$

Current Price

5.94$

Potential

-0.00%

Expected Cash-Flows