Evotec SE (NASDAQ: EVO)

Evotec SE is a life science company that provides integrated drug discovery, preclinical development, and manufacturing services to partners in the pharmaceutical and biotechnology industry. The company operates a full service platform that spans target identification, lead optimization, process development, and both small molecule and biologic production. By combining disease area expertise with proprietary technologies such as molecular patient databases, induced pluripotent stem cell models, and multi omics platforms, Evotec enables its clients to advance drug candidates from early research through clinical supply.

Evotec generates revenue primarily through fee for service contracts and full time equivalent (FTE) based arrangements, which together accounted for about 79% of total group revenues in 2025 and 94% in 2024. In addition, the company earns milestone payments and, to a lesser extent, royalties when partnered programs achieve commercial success, with milestone contributions representing 1.2% of 2025 revenues and 0.4% of 2024 revenues. The company also expects future growth from commercial manufacturing of biologics as its contract development and manufacturing organization (CDMO) activities scale.

The company operates through the following segments.

• Just Evotec Biologics: This segment provides antibody discovery, molecular optimization, process and product design, cell line and media development, and continuous and semi continuous biomanufacturing under GMP for clinical and commercial supply, including the J. POD platform for flexible, scalable production.

• Discovery & Preclinical Development: This segment offers target identification and validation, hit identification, structural biology, medicinal chemistry, in vitro and in vivo biology, biomarker analysis, early formulation, and integrated services such as IND enabling programs, API manufacturing, and cyto toxicity assessment through the Cyprotex platform.

Evotec holds a differentiated position in the outsourced drug discovery and development market by offering a fully integrated platform that spans chemistry, biology, transcriptomics, proteomics, and iPSC based disease modeling across small molecules, biologics, and cell therapies. This breadth sets it apart from competitors such as Wuxi Apptec, Charles River Laboratories, Lonza, and Samsung Biologics, which typically focus on narrower segments of the value chain. The company’s proprietary technologies, including its molecular patient databases, PanOmics platform, and AI driven analytics, enable rapid, data rich decision making and help improve return on R&D investment for its partners.

Evotec’s customer base consists of large pharmaceutical companies, mid size and small biotechnology firms, academic research institutions, venture capital backers, and nonprofit foundations. Notable partners that each contributed more than 10% of group revenues include Bristol Myers Squibb and Sandoz, while other collaborations have involved Bayer, Novo Nordisk, Eli Lilly, and various universities and biotech start ups. The company also engages with contract research organizations and healthcare providers to expand its service offerings.