Evotec has announced ‘Horizon’, the next phase in its multi-stage transformation initiative.
Horizon advances the company’s evolution by implementing a new and focused operating model built across the three pillars of operations, science and commercial execution.
This model is designed to generate above market growth and enhance operating leverage in an environment of normalised demand and increased expectations on scientific and operational performance, building on the priority reset in 2024 and the articulation of strategic levers for mid-term value creation in 2025.
Horizon will simplify organisational structures, reorganize Evotec’s global expertise into new, focused centres of excellence and align the company footprint to support more disciplined execution in high-value segments of the drug discovery and preclinical development market.
Strategic rationale
Horizon marks an important step to position Evotec for the next phase in the evolution of the global drug discovery and pre-clinical development market, driven by deeper scientific excellence and advances in data science, automation and AI.
It represents a building phase after which the company will operate with a more disciplined cost base, a higher-value technology-driven revenue mix, improved operating margins and a platform capable of delivering sustainable and profitable growth. Operational streamlining will increase agility and responsiveness and will enable faster execution, particularly within Evotec’s drug and preclinical development (D&PD) business.
Horizon accelerates delivery on Evotec’s four strategic levers for mid-term value creation:
- Above market growth rates at better-quality earnings
- Commitment to operational excellence
- Better monetisation of technology and assets of Just – Evotec Biologics
- Upside through returns on partnered asset pipeline.
Implementation plan
As part of the transformation, Evotec plans to further optimise its global footprint, reduced from 19 to 14 sites between 2024 and 2025, to 10 sites over the next two years.
The footprint optimisation will be accompanied by a workforce adjustment affecting up to 800 positions across all locations. Centres of excellence will enable a centralised innovation infrastructure by concentrating key areas of expertise.
This focused model is designed to strengthen scientific depth, enhance cross-disciplinary collaboration and support growth in high-value therapeutic and technology-driven areas.
Implementation of these measures has been initiated, with first operational effects anticipated in the second half of 2026.
Horizon is expected to be substantially implemented by the end of 2027, considering phased workforce adjustments in accordance with local legal requirements.
The organisational changes and associated charges that Evotec expects to incur are subject to several assumptions, including local legal requirements. The company is committed to a transparent process and does not expect material disruption to ongoing customer programs.
Financial framework and medium-term outlook
Considering the start of Horizon and the transition year expected in 2026, Evotec is revising its medium-term financial framework to reflect a phased trajectory from 2026 through 2030.
The revised framework incorporates the timing of restructuring measures and the continued development of the revenue mix across Evotec’s two business segments.
