Evotec tumbles after profit warning

Evotec tumbled on Wednesday after the German biotech firm warned on profits.

In a press release late on Tuesday, Evotec cut its FY2024 guidance for adjusted earnings before interest, tax, depreciation and amortisation to between €15m and €35m.

Revenues are expected to be between €790m and €820m, while R&D expenditure is expected to be €50m to €60m.

"The primary drivers of lower revenue and adjusted EBITDA guidance are related to the slower than anticipated conversion of sales orders into revenues and continued pressure on margins due to a still high fixed cost base," it said.

"However, the priority reset is fully on track and actions are underway to transform the business towards sustainable profitable growth."

At 1230 BST, the shares were down 35% at €5.39.