Skip to main content
Premium Trial:

Request an Annual Quote

Evotec Exits Gene Therapy as Part of 'Priority Reset' to Improve Profitability

NEW YORK – Evotec on Wednesday announced that it is stepping back from gene therapy R&D as part of a "priority reset to profitable growth."

The German biotech announced its "strategic exit" from the gene therapy space during a call to discuss its Q1 financial performance with investors. Evotec partners with other biotech and pharmaceutical companies to provide drug development services and advance investigational therapeutic candidates. The firm's pipeline features more than 90 small molecule assets, more than 20 biologics assets, and more than 10 cell and gene therapy assets, according to its website.

However, the company faced a challenging start to the year. Evotec's revenues decreased 2 percent in Q1 2024 to €208.7 million ($226.1 million) compared to €213.6 million in Q1 2023. For the three months ended March 31, Evotec recorded a net loss of €20.7 million, or €.12 per share, compared to €13.9 million, or €.08 per share, in the year-ago quarter. 

By cutting its gene therapy programs and closing certain sites, Evotec said it expects to improve its annualized EBITDA by more than €40 million and expects to realize its first savings in the second half of the year. Evotec said it is "working closely with all stakeholders to minimize the impact for the around 40 employees" who worked on gene therapy programs.

For full-year 2024, Evotec said it now expects revenue to grow by a double-digit percentage and its R&D expenses related to unpartnered programs to reduce by a mid-single to low double-digit percentage.

"Our stakeholders will see the efficiency measures we have started to implement to deliver results in H2 of this year," Evotec CFO Laetitia Rouxel said in a statement. "We remain fully convinced on the long-term potential of Evotec's highly scalable business model with its focus on scientific innovation and technological leadership."