Evotec Hits Technical Resistance as Restructuring and Cash Infusion Take Centre Stage
Published on 04/24/2026 at 00:00 | Redaktion boerse-global.de
The sharp rally in Evotec shares has hit a wall, with the stock retreating from a key technical level that now defines the battleground between a mere bounce and a genuine turnaround. After surging nearly 50 percent from its March trough, the biotech group’s equity gave back around 4 percent in recent trading to settle at €5.46, having earlier been as high as €6.11. The 200-day moving average at €5.84 proved an immovable obstacle — a line in the sand that often separates a short-term recovery from a sustained uptrend. Despite the pullback, the stock still shows a 30-day gain of roughly 31 percent, making the current consolidation unsurprising after such a rapid ascent.
Behind the volatility lies a company in the throes of a deep operational overhaul. The “Horizon” programme aims to slash Evotec’s global footprint to just ten sites and deliver annual cost savings of around €75 million by the end of 2027. On May 1, Dr. Ingrid Müller steps into the chief operating officer role to drive that agenda forward. Meanwhile, the supervisory board has nominated Dieter Weinand — a former Bayer executive who also ran businesses for Pfizer and Sanofi — to take the chair at the annual general meeting on June 11, succeeding Iris Löw-Friedrich.
The financial picture is mixed. The early-stage drug discovery unit continues to struggle, with revenue falling 13.5 percent last year and losses persisting. In contrast, the Biologics division posted growth of roughly 40 percent. The net loss for the full year halved to around €104 million, while liquidity remains robust at €476 million. That cash buffer will get a further boost from an expected upfront payment of roughly $100 million from Gilead Sciences, tied to the sale of Tubulis. The transaction is slated to close in the second quarter of 2026, with additional milestone payments in the tens of millions potentially following. It marks the fourth successful monetisation from Evotec’s investment portfolio.
Should investors sell immediately? Or is it worth buying Evotec?
Berenberg Bank sees sustainable profitability as a 2027 story at the earliest. Management has guided for 2026 revenue in a range of €700 million to €780 million, which could represent a slight year-on-year decline. The medium-term ambition remains to break through the €1 billion revenue barrier.
The first real test of the Horizon programme’s impact comes on May 6, when Evotec releases its first-quarter numbers for 2026. If the measures are already showing early signs of traction, the stock could mount another assault on the 200-day moving average. If the results disappoint, the rally may prove short-lived. Either way, the second half of the year will be crucial: the operational improvements from Horizon need to start flowing through to the bottom line, and the Gilead payment, if it arrives as planned, would give the shares a solid foundation for further gains.
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Evotec Stock: New Analysis - 24 April
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