Evotec SE Share Price Explained: Evotec Stock Trading Guide
Date Modified: 03/11/2024
Evotec SE (EVT.DE) holds the 5th position in the 2024 ranking of Germany's top 10 Pharma and Biotech companies by market capitalisation, trailing behind Qiagen (QGEN), Merck (MRK.DE), Biogen (BIIB) and Bayer (BAYN.DE).
In this article, we will explore the evolution of Evotec SE, including its stock market performance and how to trade its share price.
Main Points:
- Evotec SE is a pharmaceutical company with a strong global presence across Europe and the United States.
- Evotec operates through two primary segments: EVT Execute, which offers tailored drug discovery solutions, and EVT Innovate, which focuses on advancing drug research and development.
- In 1999, Evotec SE was listed on the Frankfurt Stock Exchange and on the NASDAQ as American Depositary Shares (ADSs) in 2021.
- Traders can speculate on Evotec shares' rising and falling prices and by trading EVT.DE shares CFDs on the Plus500 trading platform.
What Is Evotec SE?
Evotec SE is a pharmaceutical company focused on innovating and advancing new drug therapies that are highly effective for patients worldwide. Evotec has established a strong global presence by forming strategic partnerships with all significant pharma and biotechnology firms, including healthcare organisations and academia.
Evotec headquarters is located in Germany, and the company has a global network of 17 sites across Europe and the United States. In 2023, the bulk of the company's revenue was predominantly from the United States, representing over 50%, followed by the United Kingdom at 11.19%, Switzerland at 8.41%, and other regions worldwide.
Evotec's Business Segments
Evotec operates through two main segments: EVT Execute and EVT Innovate.
- Evotec Execute: This segment of Evotec is focused on providing tailored drug discovery solutions for partners within the Pharmaceutical industry. Through this segment, Evotec offers a comprehensive range of solutions, from independent services to team-based programs and makes money through flexible commercial options, including the traditional fee-for-service model and performance-based incentives.
- Evotec Innovate: This division is dedicated to advancing drug research and development. The company creates projects, assets, and platforms both independently and in partnership with academic institutions.
The History and Key Developments of Evotec
Evotec's journey began as Evotec BioSystems GmbH, a company founded by a team of German scientists.
The company made its first public debut on the Frankfurt Stock Exchange (FDAX) in 1999, trading under the ticker symbol "EVT." In the subsequent year (2000), after merging with Oxford Asymmetry International plc, the company rebranded from Evotec BioSystems GmbH to Evotec OAI.
Over the years, Evotec witnessed notable growth and was included in the TecDAX index in 2009, a recognition reserved for Germany's 30 largest technology companies.
After a regulatory adjustment in 2018 that allowed for dual listings on German indices, Evotec got included in the MDAX index, which tracks 60 Prime Standard shares from various sectors, excluding technology.
In April 2019, Evotec transitioned into a European company under the legal structure of Societas Europaea ("SE"), officially adopting the name Evotec SE.
On 8 November 2021, Evotec had a secondary listing on the US Nasdaq stock exchange. The company raised $500 million through the public offering of 20 million American Depositary Shares (ADSs), each representing half of one ordinary share, priced at $21.75 each.
Evotec's Strategic Acquisitions and Partnerships
Since 2008, Evotec embarked on a strategic expansion plan characterised by a series of acquisitions and partnerships to bolster its research and development capabilities, diversify its product portfolio, and extend its market reach.
A pivotal milestone was the acquisition of US-based Renovis in a $152 million stock deal, facilitating its listing on the Nasdaq stock exchange.
Subsequent notable acquisitions include two Sanofi (SNY) sub-units (a drug development and infectious disease unit), Just Biologics (previously backed by the Gates Foundation), DeveloGen AG, Kinaxo Biotechnologies GmbH, CCS Cell Culture Service GmbH, Euprotec, Cyprotex, and Aptuit. These strategic moves have complemented Evotec's existing capabilities and introduced new technologies and expertise, enabling the company to address a wider range of therapeutic areas and market opportunities.
The Financial and Stock Performance of Evotec
Evotec stock has witnessed a significant decline since the public offering of its ADS on the NASDAQ stock exchange at $ 21.75 per ADS on 08 November 2021.
As of August 2024, Evotec stock has declined over 70% year to date, trading lower around $3 per share with a negative earnings per share (EPS) of -€0.98 (-$1.07). Concurrently, Evotec SE had a market capitalisation of approximately $1.2 billion, outstanding shares of 177.55 million, and a public float of 148.79 million.
Factors Affecting Evotec Stock Performance
- Clinical Trials and Regulation: The success or failure of clinical trials and the approval or rejection of drugs by regulatory bodies like the FDA can significantly impact Evotec's stock price. Positive results can lead to a surge in stock price, while negative outcomes can cause a sharp decline.
- Market Sentiment: Investor sentiment towards biotechnology stocks, particularly those with potential breakthroughs, can drive price movements. If investors believe Evotec is on the brink of a significant medical breakthrough, demand for EVO's outstanding shares can increase, driving the company's stock price.
- Funding and Partnerships: Securing funding from governments, large institutions, or strategic partnerships can boost investor confidence in Evotec, leading to appreciation in its stock price. Conversely, challenges in securing such funding could lead to negative sentiment.
- Industry Trends and Competition: The broader trends in the biotech industry and actions by competitors, such as new drug launches or significant scientific advancements, can influence Evotec's stock. For example, a competitor releasing a similar but more effective drug could negatively impact Evotec's stock price.
- Industry Jargon: The complexity of the biotechnology industry and the difficulty for non-expert investors to understand the science behind the products can lead to mispricing or volatility, especially if the market misinterprets news or developments.
How to Trade Evotec Share CFDs
Evotec SE is publicly traded on the Frankfurt Stock Exchange under the ticker symbol "EVT." Additionally, the company's shares are accessible to US investors on the NASDAQ, where they are represented as American Depositary Shares (ADSs) under the symbol "EVO." However, when utilising Plus500 trading platforms, Evotec SE shares CFDs can be traded under the "EVT.DE."
Traders seeking to get exposure to price movements in Evotec shares without holding the actual stock can do so through Contracts for Difference (CFDs). CFDs enable traders to speculate on both rising and falling prices by taking long or short positions, with profits or losses determined by the trade's entry and exit prices.
When trading contracts for differences on Evotec shares, traders can employ the use of leverage to amplify potential profits. However, leverage also increases the risk of significant loss.
Trading Hours for Evotec (EVO) Share CFDs
You can track, analyse and trade the share price movement of Evotec SE on Plus500 CFD trading platforms. Evotec share CFDs are available for trading on the Plus500 trading platform starting daily from Monday to Friday at 3:30 PM CET to 10:00 PM CET.
*Please note that trading platform hours may vary depending on the individual operator.
Steps to Buy and Sell Evotec Share CFDs with Plus500
To trade Evotec share CFDs with Plus500, follow these steps:
- Visit the Plus500 website and sign up for a trading account.
- On the trading platform, look for "Evotec" or "EVT.DE" in the search bar or browse the available instruments.
- Analyse Evotec's share price movement using technical analysis and fundamental analysis.
- Input the number of share CFDs you wish to buy or sell.
- Set up your market orders, including stop-loss orders and take-profit orders.
- Confirm your buy or sell order.
Conclusion
Evotec SE is a leading player in the field of biotechnology and pharmaceutical research. When considering trading opportunities with Evotec SE shares, traders should keep an eye on the company's latest developments, including its advancements in drug discovery, key partnerships, and earnings reports. Monitoring relevant news and updates and understanding the competitive landscape within the life sciences sector is crucial for making informed trading decisions.
If you wish to speculate on the rising and falling prices of Evotec shares, you can check out Evotec SE share CFDs at Plus500.
FAQs
As of July 2024, individual investors held 48% of Evotec's shares, while institutional investors accounted for 36%. Among the institutional shareholders, notable stakes included T. Rowe Price Group (TROW) with 10%, Nova Holdings with 8%, and Mubadala Investment Company with 7%.
Evotec competes with biotechnological companies like Novartis (NOVN.VX), Astellas Pharma (4503. TY), Merck & Co., Roivant Sciences, and VBI Vaccines.
As of September 2024, Evotec opposes dividends and does not project any future issuance of cash dividends on its ordinary shares. Nonetheless, this may be subject to change.
Evotec operates primarily in the Biotechnology & Medical Research industry, and it is part of the broader Healthcare sector.
Evotec SE has a workforce of approximately 5,055 people (as of August 2024).
Learn More About Evotec
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