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Evotec shares lose a third of their value on cloudy outlook

By Steve Goldstein

Shares of German biotech Evotec lost a third of their value on Wednesday on an uncertain outlook as it named a new chief executive.

The Hamburg, Germany-based company reported 2023 financials near consensus estimates, as its adjusted earnings before interest, tax, depreciation and amortization fell 35% to EUR66 million as revenue rose 4% to EUR781 million. Analysts polled by FactSet expected EBITDA of EUR61 million on sales of EUR782 million.

Evotec (XE:EVT) - upgraded to buy from hold at Deutsche Bank two weeks ago - also named a permanent CEO, turning to Christian Wojczewski, the chief executive of Dutch medical devices company Mediq, who will replace interim CEO Mario Polywka in July.

The company forecast double-digit growth in both adjusted EBITDA and revenue for 2024 and said "refined guidance" will be assessed by the new CEO, with the company giving a mid-term outlook at its first-half results, due in August.

Analysts had expected EBITDA to more than double, to EUR159.5 million, according to FactSet.

It said a "priority reset" that will involve simplifying its organizational structure and operating model while optimizing footprint and capacity will lift earnings by at least EUR40 million per year.

Evotec shares skidded by 34%, by far the worst performance in the Stoxx Europe 600.

Evotec's leading shareholders include Novo Nordisk Foundation investor Novo Holdings and Mubadala Investment Co., one of Abu Dhabi's sovereign wealth funds.

-Steve Goldstein

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04-24-24 0358ET

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