The German drugmaker reported an earnings per share loss of 54 cents, down from 8 cents a year ago.
Also read: German drug developer Evotec seeks advisor recommendation as acquisition considerations mount.
“However, earnings and profitability in the first part of 2024 were more challenging than expected for the company. We are operating in a more challenging market environment, which adds to a slowdown in startup R&D spending,” said Christian Wojczewski, CEO of Evotec.
“This required us to drive our transformation towards successful and sustainable growth, further leveraging our strengths, expanding productivity, reducing complexity and strengthening the organization for its next stage of growth,” he said. -she added.
The company said the return to successful expansion is on track to achieve the expected improvement in annualized adjusted EBITDA of more than €40 million from the second half of 2024.
The company has known the possibility of reducing approximately 400 positions (7% of the total) in its global footprint and a relief in the physical footprint by renouncing certain leases.
The company will abandon genetic treatment and build a site in Orth, Austria. It will also end its chemical operations in Lyon, France, and spin off a production facility in Halle/Westphalia, Germany.
Outlook: Evotec expects between €790 million and €820 million for 2024, with an adjusted EBITDA of between €15 million and €35 million.
Price Action: EVO shares fell 0. 60% to $3. 30 in late Wednesday hours.
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