Evotec’s June AGM: Activist Pressure, Cost Cuts, and a Convertible Bet Collide

Evotec shareholders are bracing for a pivotal annual general meeting on 11 June in Hamburg, where a U.S. activist fund with a 7% stake is demanding a radical shake-up. Shares edged 3% higher to €5.25 on Friday, but the modest gain belies the tension building around the biotech firm. The meeting could determine whether the company bows to calls for a separate listing of its U.S. subsidiary Just – Evotec Biologics, a unit that activist investor MAK Capital values at over €1 billion — more than Evotec’s entire current market capitalisation.

MAK Capital, which has signed a cooperation agreement committing to dialogue with Evotec, is also pushing for faster cost reductions and tangible operational progress by year-end. The fund’s insistence on a Biologics IPO reflects a deep conviction that the business is being undervalued within the larger group. Evotec has responded by launching a sweeping strategic review of its portfolio, capital structure, and long-term ownership, with Morgan Stanley and Moelis & Company acting as advisors.

The restructuring programme dubbed Horizon, which kicked off in March 2026, is already leaving a mark. Evotec plans to halve its site count from 19 to 10 and has booked €75 million in provisions for severance and impairments in the first quarter. The goal is structural run-rate savings of roughly €75 million by the end of 2027, with 20% to 30% of that expected to materialise as early as 2026. Yet the financial strain is evident: first-quarter revenue slipped to €156.6 million, while adjusted EBITDA swung to a loss of €21.9 million from a €3.1 million profit a year earlier. Management points out that the prior-year figure was flattered by a one-off licence sale to Sandoz.

To fund the transformation, Evotec placed a €116.1 million convertible bond in May. The seven-year note carries a 2.625% coupon and a put option after five years, maturing in 2033 at 110% of par. The initial conversion price of €6.5313 represents a 38% premium over the reference price of €4.75. The net proceeds will feed the Horizon programme, and the company is sticking to its full-year guidance of revenue between €700 million and €780 million, with adjusted EBITDA ranging from zero to €40 million — a target that hinges on a stronger second half.

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

The AGM agenda is packed with governance changes. Dieter Weinand is proposed as chairman of the supervisory board, which will expand from six to seven members. Dr. Wolfgang Hofmann is slated to join as an independent member. Shareholders will also vote on a new Performance Share Plan 2026, authorising awards on up to 10 million ordinary shares, which would require a conditional capital increase of up to €10 million — roughly 5.6% of the current share count of 177.9 million.

Meanwhile, a routine voting rights notification triggered by the May capital measures confirmed the updated total number of voting rights at 177,907,695. Such disclosures are procedurally standard but underscore the ongoing shifts in the company’s equity base as it navigates its turnaround.

On the market front, Evotec’s return to the MDAX, expected in June, should improve visibility among institutional funds and ETFs. Technically, the stock is trading about 7% above its 50-day moving average of €4.91 but remains 30% below the 52-week peak of €7.54. More critically, the share price is still roughly 7% under the 200-day average of €5.65 — a level that, if reclaimed, would brighten the technical picture.

Evotec at a turning point? This analysis reveals what investors need to know now.

With the AGM behind them, investors will turn their focus to the half-year report in August. That is when Evotec must demonstrate whether Horizon is gaining operational traction — and whether the activist-driven push for a Biologics spin-off gains any further boardroom momentum.

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