Evotec's Dual Narrative: JPMorgan Takes a Stake While AI Chief Steps Into the Restructuring Storm

JPMorgan builds 6% stake in Evotec as drug discovery firm names AI executive Rui Wang, but shares slump amid revenue decline and deep cost-cutting before the AGM.

Days before a high-stakes annual general meeting, Evotec finds itself at the centre of two sharply contrasting signals. JPMorgan has built a 6.01 percent stake, crossing the 5 percent reporting threshold on 27 May and filing the disclosure on 4 June. At the same time, the Hamburg-based drug discovery specialist named Rui Wang as its first-ever executive vice president for global in-silico and AI solutions — a move that speaks to long-term ambition but arrives amid deep cost-cutting and slumping investor confidence.

The US bank’s holding splits into 3.90 percent held directly in shares and 2.12 percent via financial instruments. JPMorgan joins MAK Capital, the activist investor that owns roughly 7.1 percent of Evotec and earlier this year secured a cooperation agreement aimed at ensuring stable voting conditions during the company’s transformation. The presence of two substantial institutional holders suggests a shareholder base that is both watching closely and placing bets on the turnaround — though the stock’s trajectory tells a more sobering story. At €4.81, the share price sits nearly 38 percent below its 52-week high of €7.75 and has lost about 13 percent since the start of the year.

Wang’s appointment, effective immediately, places him in charge of embedding artificial intelligence across Evotec’s entire drug development pipeline. With two decades of experience in bioinformatics and data-driven decision-making at AstraZeneca, he is tasked with moving AI from a research adjunct to a central steering mechanism. The position is newly created — a sign that management recognises the need to modernise its platform. Yet the timing fuels scepticism. Critics argue that the AI push, however sound strategically, demands time and investment that the company may not have as it battles operating losses and a restructuring programme.

Evotec’s first-quarter numbers laid bare the pressure. Revenue fell to €156.6 million, while adjusted EBITDA swung to minus €21.9 million. The company blames a tough prior-year comparison, currency headwinds, and the absence of a one-off licensing fee that had flattered 2025 results. Full-year guidance remains intact: revenue between €700 million and €780 million, with adjusted EBITDA ranging from break-even to €40 million — a wide band that underscores uncertainty.

To fund the overhaul, Evotec placed a €116.1 million convertible bond in May, part of the “Project Horizon” restructuring plan. The goal is to achieve structural cost savings of around €75 million annually by the end of 2027. The price is steep: roughly 800 jobs are being eliminated globally, and the company booked €75 million in reorganisation provisions in the first quarter, mostly for severance and asset impairments.

The AGM on 11 June in Hamburg will be a litmus test for management’s credibility. A key item on the agenda is the election of Dieter Weinand as chairman of the supervisory board, replacing Prof. Dr Iris Löw-Friedrich. Weinand, a former Bayer board member and CEO of Bayer Pharmaceuticals, also held senior roles at Pfizer, Bristol Myers Squibb and Sanofi — a résumé designed to satisfy activist calls for more commercial heft in the boardroom. Dr Wolfgang Hofmann is proposed as an independent member, expanding the board from six to seven seats. MAK Capital had pushed for this very shift, and Weinand’s industry pedigree directly addresses that demand.

Analyst opinion reflects the divide. RBC Capital Markets maintains an “Outperform” rating with a €10 price target. Berenberg also recommends buying. The Deutsche Bank is more cautious, assigning a “Hold” and a fair value of €4.50 — just below the current quote. Whether JPMorgan’s entry signals genuine conviction or is merely technical remains unclear. What the AGM will reveal is whether the restructuring has the backing it needs from shareholders — and whether Wang’s AI bet can start to rebuild trust before the next earnings season delivers its verdict.