New collaborations at the German drug maker Evotec are in part behind Wednesday's report of a rise in full-year revenue, the company said.
The group has announced a priority reset, which is expected to result in an annualized Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) improvement of over €40 million ($42.8 million), the company said in a statement.
Mario Polywka, chief executive of Evotec, said: "Evotec's business displayed great resilience in a challenging market environment. Our central focus for 2024 is to protect our strong balance sheet and refocus the company on profitable growth. Through the planned priority reset and measures to rightsize our operational and corporate structure, we are taking the necessary steps to ensure that we continue to work with our partners to shape the medicines that matter for many years to come."
Evotec is also planning to to update the market on its mid-term forecast along with its first-half results.
For the 12-month period, Evotec registered an operating loss of €47.507 million, compared with a profit of €20.850 million, recorded for the previous year. Excluding items, EBITDA stood at €66.352 million as against €101.654 million in 2022.
Research and development expenses dropped to €68.529 million from €76.642 million a year ago. Revenue was €781.426 million, up from the previous year's €751.448 million.
The group expects demand and business climate in selected areas will only start improving toward the end of 2024. Over the course of 2024, Evotec will simplify its organizational structure and operating model, while also optimizing its footprint and capacity, which is anticipated to result in annualized EBITDA improvement of over €40 million.
The company will focus more on right-sizing its business, strongly concentrating on its key modalities, small molecules, and biologics. For the full year, the group expects its adjusted EBITDA to grow at a double-digit percentage from last year. Evotec expects a reduction of unpartnered research and development investments in a mid-single to low double-digit percentage range, for the year. Annual revenue is projected to grow at a double-digit percentage from the previous year.
