Evotec Stock: Has the Breakthrough Finally Arrived in 2025?
- 1. The Lifeline: Evotec’s €650M Toulouse Deal
- 2. Operational Reality Check: Revenue Bleeding
- 3. Takeover Dreams: Gone with the Wind
- 4. The Road Ahead: 2026 or Bust
- FAQs
After months of financial turbulence, Evotec’s strategic divestiture of its Toulouse facility has injected much-needed liquidity—but is this enough to revive its struggling Core business? With a 13% weekly rebound and a €650M deal, the biopharma player is breathing again. Yet, operational challenges and a 7.1% revenue drop paint a grim reality. Here’s our deep dive into whether Evotec’s stock is a buy or a bailout candidate.
1. The Lifeline: Evotec’s €650M Toulouse Deal
CEO Christian Wojczewski’s "asset-light" pivot just paid off. The sale of Evotec Biologics’ Toulouse site to Sandoz delivered an immediate cash infusion—€120M upfront, with potential payouts reaching €650M. Market analysts are calling it a "financial airbag," and the charts agree: shares rebounded 13% after hitting a 52-week low of €5.12. But let’s not pop champagne yet—this buys time, not a turnaround.
2. Operational Reality Check: Revenue Bleeding
Q3 2025 numbers revealed the ugly truth: revenue fell 7.1% to €535.1M, with the "Discovery & Preclinical" segment hit hardest by Big Pharma’s R&D cuts. Oddly, the now-divested biologics unit was the lone bright spot (double-digit growth). Adjusted EBITDA guidance? A paltry €30–50M. As one Hamburg trader quipped, "They sold the family silver to pay the rent."
3. Takeover Dreams: Gone with the Wind
Remember Halozyme’s €11/share bid in 2024? Today’s €5.80 price laughs at that memory. Triton Capital’s investment failed to trigger a buyout, leaving Evotec as a standalone play. Insider buying by Aurélie Dalbiez hints at confidence, but with 60% volatility, this stock isn’t for the faint-hearted.
4. The Road Ahead: 2026 or Bust
The Sandoz deal staves off disaster, but Evotec must now prove its "efficiency measures" can stabilize the CORE business. Our take? Watch for Q1 2026 margins—anything short of 15% means the Toulouse cash was just life support.
FAQs
Is Evotec stock a buy after the Toulouse sale?
Short-term traders might ride the momentum, but long-term investors should wait for concrete operational improvements in 2026.
Why did Evotec’s revenue decline despite the biologics growth?
Pharma clients slashed discovery-stage budgets—Evotec’s core revenue driver. The biologics growth ironically came from a unit they’ve now sold.
What’s Evotec’s biggest risk in 2025?
Execution. They’ve bought runway with the Sandoz deal, but failing to restructure the discovery business could mean irreversible damage.
