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Highlights

  • Group revenue fell 5% to GBP371.2m; D&PD down 11% to GBP269.0m.
  • JEB grew 16% to GBP102.2m; USD 95m milestones from BMS.
  • Non-binding deal to sell Toulouse J.POD for about USD 300m.

Evotec SE reported mixed first-half 2025 results, reflecting divergent trends across its businesses and a challenging discovery market. Group revenues declined 5% year over year to GBP371.2 million as Discovery & Preclinical Development (D&PD) revenue decreased 11% to GBP269.0 million, consistent with softer demand conditions that management expects could persist into 2026. In contrast, Just – Evotec Biologics (JEB) delivered 16% growth to GBP102.2 million, underscoring continued client uptake for biologics development and manufacturing services.

The period included meaningful collaboration progress with Bristol Myers Squibb. Evotec received milestone and other payments totaling USD 95 million—USD 75 million related to achievements in targeted protein degradation and USD 20 million linked to neuroscience research. These cash inflows partly cushioned the impact of weaker discovery revenue and demonstrate ongoing external validation of Evotec’s partnered pipeline approach.

Profitability metrics remain pressured. Adjusted Group EBITDA was negative at GBP(1.9) million in H1 2025, compared with positive levels in prior periods, reflecting mix effects and the lag between order intake and revenue conversion in discovery services. Management noted that its cost-savings program has exceeded internal targets, with benefits expected to accumulate through the second half.

Strategically, Evotec announced a non-binding agreement to divest its J.POD biologics facility in Toulouse for approximately USD 300 million, plus potential additional considerations. The contemplated transaction would advance a shift toward an asset-lighter model, releasing capital while maintaining customer delivery through alternative capacity arrangements. Execution risk remains until definitive documents are signed and closing conditions are satisfied.

Looking ahead, Evotec guides full-year 2025 revenues to GBP760–800 million and adjusted EBITDA to GBP30–50 million (versus GBP22.6 million in 2024). The outlook implies a better second half driven by JEB growth, collaboration milestones, and incremental effects from cost actions, offset by continued caution in the drug discovery market. Key watch items include timing and terms of the J.POD sale, new business wins in D&PD, milestone cadence with partners, and conversion of the improved EBITDA guidance amid ongoing market softness. Overall, H1 illustrates resilience in biologics and partnered R&D, tempered by cyclical headwinds in discovery services and near-term margin constraints.