The German drugmaker reported an EPS loss of 54 cents, down from 8 cents a year ago.
Related: German drug developer Evotec seeks advisor recommendation as purchasing considerations increase
“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, compounded by the slowdown in R&D spending.
“This has required us to drive our transformation towards successful and sustainable growth, taking greater advantage of our strengths, expanding productivity, reducing complexity and strengthening the organization for its next stage of growth,” he 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 discounts of approximately 400 positions (7% of the total) throughout its global presence 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 separate a production plant in Halle/Westphalia, Germany.
Outlook: Evotec forecasts between €790 million and €820 million for 2024, with an adjusted EBITDA of between €15 million and €35 million.
Price action: EVO inventory was down 0. 60% at $3. 30 last Wednesday.
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