Evotec's Restructuring Gains Momentum with New COO and Incoming Cash

Evotec shares surge 30% as new COO Dr. Ingrid Müller leads 'Horizon' restructuring, targeting EUR 75M annual savings from 2027 and backed by strong liquidity.

Investors are rallying behind Evotec SE's aggressive turnaround plan, sending the Hamburg-based biotech's shares soaring by nearly a third over the past month. The stock closed at EUR 5.64 on Friday, decisively breaking through its 100-day moving average at EUR 5.48. This surge reflects growing confidence in the company's "Horizon" transformation program, which is now being spearheaded by a newly appointed operations chief.

Dr. Ingrid Müller will assume the role of Chief Operating Officer on May 1, tasked with executing the deep restructuring. She brings over two decades of industry experience, most recently overseeing portfolio strategy at CureVac, and has a clear mandate to enhance operational discipline and slash costs. Her appointment completes the new leadership team alongside CEO Christian Wojczewski and recently appointed commercial chief Ashiq H. Khan.

The Horizon initiative demands significant sacrifices, including the elimination of approximately 800 jobs and a notable reduction in the global site network. The payoff, however, is projected to be substantial. Management anticipates annualized savings of around EUR 75 million from 2027 onward, with roughly one-third of that benefit expected to materialize as early as 2026.

The company's full-year 2025 results underscore the necessity of this strategic shift. While revenue remained stable at just over EUR 788 million, the net loss was halved to approximately EUR 104 million. Shareholders will not receive a dividend. For the current transitional year, the board is targeting revenue of up to EUR 780 million and an adjusted operating profit of no more than EUR 40 million.

A robust liquidity position provides a cushion for the restructuring costs. Evotec ended 2025 with a cash balance of about EUR 476 million. This war chest will be bolstered in the second quarter by an expected upfront payment of roughly $100 million from Gilead Sciences related to the Tubulis acquisition.

Analyst sentiment is turning positive. Privatbank Berenberg's Christian Ehmann recently reaffirmed his "Buy" rating on Evotec, attaching a price target of EUR 9.70. He identifies the company as a clear beneficiary of the current AI trend in pharmaceutical research.

The coming months present a critical test. Evotec is scheduled to report first-quarter figures on May 6, offering an early glimpse into the program's progress. The second half of the year will be the true proving ground, when cost savings must begin appearing in quarterly reports and the Gilead deal is expected to close. If management delivers on these milestones, the recent rally may have a firm foundation.