Evotec Cuts 800 Jobs, Sees 1.1% Revenue Drop and €75M Cost Savings Plan
Evotec closed four sites and cut about 800 roles under its Horizon transformation, targeting annual run-rate savings of €75 million by end-2027 after delivering €60 million in cost reductions and 60% lower capex in 2025. Full-year revenue fell 1.1% as discovery/preclinical EBITDA dropped, prompting operational overhaul.
1. Horizon Transformation and Cost Savings
Evotec initiated its Horizon transformation by closing four sites and reducing approximately 800 positions to streamline operations. This program has already delivered over €60 million in annualized cost savings, cut capital expenditure by around 60% in 2025 and aims for €75 million in structural run-rate savings by end-2027.
2. Revenue Performance and Segment EBITDA
Full-year revenues declined 1.1% compared to 2024, driven by lower activity in the Discovery and Preclinical Development segment. Adjusted EBITDA in that segment fell significantly, highlighting the need for further operational efficiency and capacity realignment.
3. Revenue Mix and BMS Partnership Evolution
Non-DoW, non-Sandoz revenues grew 40% in 2025, projected to account for 50% of the Just business by end-2026, up from 30% in 2025. The BMS collaboration is shifting toward a greater mix of milestone and royalty-based payments, with a high-single-digit revenue decline expected in 2026 versus 2025.
4. Future Outlook and Risk Management
Evotec anticipates a market recovery in 2026 driven by improved biotech funding and commercial efforts. The planned sale of Tubulis will generate significant cash proceeds, Sandoz biosimilars royalties are expected post-2028, and growing AI adoption in discovery platforms is set to boost future volume.