Evotec Stock Surges as $100 Million Deal Nears

Evotec stock surges 18% on a $100M cash infusion from Gilead's Tubulis deal. The firm is restructuring to cut costs while activist pressure mounts on its biologics unit.

Investors are betting heavily on a near-term cash infusion for Evotec SE, sending the Hamburg-based drug discovery firm's shares soaring. The stock jumped nearly 15% on Tuesday and continued its climb Wednesday to €5.50, marking a gain of roughly 18% over the past seven trading sessions. This rally has pushed the share price more than 20% above the €4.50 price target set by Deutsche Bank, which maintains a "Hold" rating on the stock.

The primary catalyst is an expected one-time payment of approximately $100 million from Gilead Sciences. The payment is tied to Gilead's acquisition of Tubulis, in which Evotec holds a stake. Company management anticipates finalizing the transaction in the second quarter of 2026, a critical period for the firm's liquidity. This substantial cash injection is viewed by the market as a robust signal for Evotec's balance sheet, which reported liquid funds of €476 million at the end of 2025.

This financial boost arrives as Evotec navigates a complex corporate transformation. The internal restructuring program, dubbed "Horizon," aims to streamline the company's global footprint from 14 sites to 10. Management projects this consolidation will yield annual cost savings of around €75 million by the end of 2027. However, restructuring charges will weigh on results in the current year.

For the pivotal 2026 fiscal year, which executives have labeled a "transition year," the company has provided a wide guidance range. Consolidated revenue is forecast to land between €700 million and €780 million, with adjusted EBITDA expected to be between zero and €40 million. This narrow EBITDA target underscores the persistent margin pressure Evotec faces during its overhaul.

Adding another layer to the strategic shift is pressure from activist investor MAK Capital. The investor is advocating for a stronger focus on the biologics division, "Just – Evotec Biologics," with a potential separate U.S. listing of the segment being discussed. To accelerate operational execution, Dr. Ingrid Müller is slated to assume the role of Chief Operating Officer on May 1, 2026.

The convergence of these factors places Evotec in a decisive phase. The stock, while up significantly in the short term, still trades approximately 33% below its 52-week high. The second half of 2026 is shaping up to be a critical test. By then, the operational improvements from the Horizon program must begin to materialize in the financial reports, and the Gilead payment must be received as planned. The sustainability of the recent share price recovery hinges on both conditions being met.