Evotec Faces Pivotal Shareholder Vote as Convertible Bond Raises €116m and Governance Shifts

Shareholders vote on board and €116M convertible bond as stock nears 52-week low; Q1 loss deepens but liquidity holds. Analysts split on recovery.

The stage is set for a critical judgment day at Evotec. When shareholders gather for the annual general meeting on 11 June, they will not only vote on a revamped supervisory board but also weigh whether management’s latest capital-raising manoeuvre buys enough time for a turnaround — or merely delays the reckoning.

The Hamburg-based drug discovery group has placed a convertible bond worth €116.1 million, carrying a 2.625% coupon and a conversion price of €6.53 per share. Proceeds are earmarked for “Project Horizon”, the ongoing restructuring programme that has already strained profitability. Market observers also view the deal as a defensive tactic: by strengthening the balance sheet, Evotec may deter potential suitors such as private equity firm Triton, giving the board breathing room to execute its plan without hostile distraction.

Stock Slides as Investors Price in Dilution

Shareholders have punished the move. By Friday’s close, the stock had fallen to €4.61 — a drop of 2.58% on the day and a staggering 12.11% on the week. That leaves Evotec within striking distance of its 52-week low of €4.14, a level that is now just €0.47 away. The company’s market capitalisation stands at roughly €824 million.

Technical indicators flash caution. The equity trades well below its 50-day moving average of €4.88, and the gap to the 200-day average is a yawning 19.18%. The relative strength index at 40.8 points to creeping scepticism rather than oversold exhaustion. Should the share price slip under €4.60, a direct test of the annual trough looks probable in the near term.

Analysts Divided on Recovery Path

Sentiment among professional watchers remains split. Deutsche Bank retains a “Hold” rating with a price target of €4.50, underscoring the operational fragility. In contrast, RBC Capital Markets strikes a far more bullish tone: a “Buy” recommendation and a fair-value estimate of €10.00. The wide spread between those forecasts mirrors the uncertainty baked into the business, where the trailing earnings per share sits at minus €0.76.

Q1 Numbers Reveal the Scale of the Challenge

The first-quarter results lay bare why nerves are frayed. Evotec posted revenue of €156.6 million, but adjusted EBITDA swung to a loss of €21.9 million from a profit of €3.1 million a year earlier. That comparison, however, is skewed: the prior-year figure included a one-off licensing contribution from the Sandoz transaction, while unfavourable currency movements added further drag.

Liquidity remains a cushion: the group ended March with €444.8 million in cash, down from €476.4 million at year-end. Management sticks by its 2026 guidance, targeting €700 million to €780 million in revenue and adjusted EBITDA between €0 and €40 million. The bulk of the improvement under Project Horizon is expected to materialise in the second half.

Operational Wins and a New Leadership Line-up

Despite the financial strain, the science side has not gone quiet. Evotec reported progress in its collaboration with Almirall on inflammatory skin diseases and secured fresh grant commitments from the Gates Foundation for tuberculosis research — moves that shore up its credibility as a partner in early-stage drug development.

Meanwhile, the leadership team is being reshaped. Claire Hinshelwood has taken over as chief financial officer, and Dr Ingrid Müller has joined the executive board for operations. The AGM will seek to formalise supervisory-board changes: Dr Wolfgang Hofmann is proposed as an independent member, Dieter Weinand is slated for the chair, and the entire board will expand from six to seven seats. A separate voting agreement with MAK Capital Fund LP, a notable shareholder, commits the fund to standard voting and cooperation obligations — potentially smoothing governance debates.

The Test Ahead

With the convertible bond placed and a fresh board line-up on the table, Evotec has bought itself time and cash. But the June shareholder meeting will be the first real test of whether that time can be converted into credible momentum. Without a clearer operational narrative from the research partnerships — and a share price that stops flirting with its lows — the story of a turnaround risks being read as one more transition year.