Evotec's Summer of Reckoning: Activist Pressure, Strategic Options, and a Cash Infusion

The convergence of a shareholder meeting, an activist campaign, and a broad strategic review is turning Evotec’s June into something far more consequential than a routine corporate milestone. On 11 June, the biotechnology services group will hold its annual general meeting in Hamburg, but the agenda extends well beyond the formalities of board elections and compensation approvals.

MAK Capital, the US-based activist fund that holds roughly 7% of Evotec’s shares, has been pressing for a separate listing of the company’s US subsidiary, Just – Evotec Biologics. That demand is likely to dominate the Q&A session and puts the management team on the spot just as it navigates a sweeping restructuring programme. Evotec has already engaged Morgan Stanley and Moelis & Company to run a comprehensive review of strategic options — including portfolio shifts, capital structure adjustments, and ownership changes — though no decision has been made and no timetable set. The outcome of that process could ultimately carry more weight for the share price than any single quarterly earnings number.

On the AGM agenda itself, Dieter Weinand is proposed to take the chair of the supervisory board, which will expand from six to seven members. Shareholders will also vote on a new compensation system and a Performance Share Plan 2026 that authorises awards on up to 10 million ordinary shares, representing roughly 5.6% of the current capital base of around 178 million shares. That potential dilution is modest but worth noting as the company leans on equity-linked instruments to fund its transformation.

Should investors sell immediately? Or is it worth buying Evotec?

The restructuring known as Project Horizon has already left deep marks on the first-quarter figures. Revenue fell 21.7% to €156.6 million, weighed down by the absence of an extraordinary licensing payment from Sandoz in the prior-year period and weak demand for early-stage drug discovery services. A €75 million restructuring charge pushed the operating loss to €121.4 million. Despite that, management is sticking to its full-year guidance of €700–780 million in revenue and adjusted EBITDA between zero and €40 million. Horizon targets annual cost savings of roughly €75 million by the end of 2027, achieved by cutting around 800 jobs and reducing the global footprint from 14 to 10 sites. European employee consultations are expected to conclude by mid-2026, with the first headcount reductions starting in the third quarter.

A counterweight to the restructuring pain is the expected cash inflow from the sale of Evotec’s minority stake in Tubulis to Gilead. The deal should deliver around $100 million upfront, plus up to $58 million in milestone payments, with closing scheduled for the second quarter. That cash is particularly valuable at a time when the company needs to cover outflows from Project Horizon and fund day-to-day operations.

The share price has shown some recent resilience, closing at €5.25 on Friday, a gain of 3.04% on the day. Over one week the stock advanced 1.45%, and over 30 days it rose 4.47%. The closing price now sits above the 50-day moving average of €4.91, but the 200-day average at €5.65 remains the next significant hurdle. The longer-term picture is still weak: the stock has lost 5.25% year to date and 23.33% over the past twelve months. A planned return to the MDAX index in June 2026, while not a cure-all, should broaden institutional and ETF demand and improve visibility.

The AGM on 11 June will be the immediate focal point, but the half-year report due in August will be the true test of whether Horizon’s cost measures are translating into operational traction. For now, the combination of activist pressure, a strategic review with top-tier banks, and a restructuring that is still in its early stages leaves Evotec at an unusually dense intersection of forces.

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