Evotec SE (EVO): Business Model Canvas [Dec-2025 Updated]

You're looking at Evotec SE's strategy right now, and as an analyst who's seen a few cycles, the late 2025 picture is clear: it's a pivot toward an asset-lighter, higher-margin engine. The real action isn't just in the service work anymore; it's about capturing value from technology licensing and milestones, which is defintely the story here. With group revenues guided between € 760 - 800 m for the year and a major push to save over € 60 m via the Priority Reset, their success hinges on converting R&D prowess into tangible, high-margin returns. Dive into the full Business Model Canvas below to see exactly how their key partnerships and J.POD technology are set to power this shift.

Evotec SE (EVO) - Canvas Business Model: Key Partnerships

You're looking at the network that underpins Evotec SE's entire operation-the critical alliances that fuel its drug discovery and development engine. These aren't just handshake agreements; they are multi-year, multi-million dollar commitments that validate their technology platforms.

The sheer breadth of Evotec SE's external engagement is a key component of its model. As of late 2025, the company reports working with over 800 biotechs alongside all Top 20 Pharma companies. This extensive network provides a constant flow of projects and validation across diverse therapeutic areas, including oncology, cardiovascular and metabolic diseases, neurology, and immunology. Evotec SE also maintains a strong internal pipeline, holding a portfolio of over 100 proprietary R&D assets, most of which are co-owned with partners.

The financial structure of these partnerships often involves upfront payments, research fees, and success-based milestones, which are crucial for Evotec SE's revenue mix, especially as the Discovery & Preclinical Development segment faced a soft market environment, with recovery expected as early as 2026.

Here's a look at the quantifiable impact of some of the most significant strategic relationships:

The collaboration with Bristol Myers Squibb in protein degradation, initiated in 2018, is showing tangible regulatory progress. The recent $5 million payment followed the U.S. FDA's acceptance of an Investigational New Drug application for a cereblon E3 ligase modulator (CELMoD™), with Phase 1 trials slated to begin in 2026. Separately, the neuroscience partnership, which began in 2016, saw a US$ 25 million milestone payment in October 2025, supporting preclinical pipeline advancement, and this relationship was renewed for an additional eight years in 2023.

The agreement with Sandoz AG, finalized in November 2025, is transformative for Evotec SE's asset-lighter strategy. The sale of the Just - Evotec Biologics Toulouse site brought in approximately US$ 350 million in cash upfront. This deal also includes future consideration that could exceed US$ 300 million in license fees and milestones, plus royalties on up to ten biosimilars. The total potential value, excluding royalties, is framed as potentially over US$ 650 million.

The multi-target research alliance with Bayer AG in kidney diseases, which started in August 2016, is advancing a specific asset. In December 2025, Bayer initiated the Phase 2a ASSESS study for BAY 3401016, a monoclonal antibody targeting Semaphorin-3A for Alport syndrome. This advancement triggers a milestone payment for Evotec SE upon the first patient dosing, projected for early 2026. The original terms for this collaboration included milestone potential exceeding € 300 million plus tiered royalties.

Evotec SE's work with The Gates Foundation focuses on global health imperatives. In May 2025, the company secured a new US$ 2.5 million grant, building on an ongoing five-year partnership to generate data for next-generation tuberculosis drug combinations. This follows an earlier, larger grant from the foundation in 2019, valued at $23.8 million over five years, aimed at developing shorter, safer TB regimens.

The operational scale supporting these partnerships involves a global team of more than 4,800 experts across sites in Europe and the U.S. The company's offerings are tailored to various client needs, ranging from fee-for-service to fully integrated R&D programs. The Just - Evotec Biologics segment, which saw revenues increase by 16% to € 102.2 million in the first half of 2025, is a key enabler for these large-scale manufacturing and development collaborations.

• The protein degradation partnership with BMS has a drug candidate (BMS-986419) that has successfully completed Phase 1 clinical trials.
• The Bayer kidney disease program is advancing into a Phase 2a study.
• The Sandoz deal involves royalties on a portfolio targeting a net originator sales market exceeding US$ 90 billion.
• The Gates Foundation TB work builds upon a previous five-year partnership structure.

Finance: draft 13-week cash view by Friday.

Evotec SE (EVO) - Canvas Business Model: Key Activities

You're looking at the core engine of Evotec SE as of late 2025, which is all about turning science into tangible assets and services. The company is executing a sharp pivot, focusing on operational excellence while pushing its core technology platforms.

The first major activity centers on Integrated drug discovery and preclinical development (D&PD). This segment, formerly known as Shared R&D, is navigating a soft market for early drug discovery services. For the first nine months of 2025, D&PD revenues were reported at € 392.1 m, a decrease of (12.3)% compared to the same period in 2024, which was € 447.1 m. Looking at the first half, the revenue was € 269.0 m, down 11.0% from H1 2024's € 302.4 m. Still, quotations are growing in number and value, and negative change orders are declining, suggesting a potential market recovery might be visible as early as 2026.

The second pillar is Biologics development and continuous manufacturing (Just - Evotec Biologics), or JEB. This part is showing strong momentum, even as the company transitions toward an asset-lighter model. JEB revenues for 9M 2025 grew by 11.3% to reach € 143.4 m, up from 9M 2024's € 129.3 m. This growth is heavily fueled by the non-Sandoz / non-DoD business, which saw an increase of 105% year-over-year. Their J.POD facilities are designed for scalability, with each unit capable of delivering up to and beyond 2,000 kg per year of biologic drug substance.

Here's a quick look at how the two main segments stacked up through 9M 2025:

Third, Strategic R&D asset co-development and pipeline progression is a key value driver, especially through partnerships. Evotec SE is expecting up to four molecules to enter clinical Phase II within the next six to nine months as of November 2025. You saw significant financial milestones from this activity; for instance, progress in the Bristol Myers Squibb (BMS) collaboration triggered payments totaling US$ 75 m in the first half of the year, plus a US$ 20 m research payment in Q2 2025. Also, the landmark November 4, 2025, transaction with Sandoz involves potential payments exceeding US$ 650 m plus royalties on up to ten biosimilars, with an upfront cash component of approximately US$ 350 m for the Toulouse site, and over US$ 300 m in future development revenues and milestones.

Fourth, the activity of Leveraging AI and automation in drug discovery platforms underpins the D&PD segment's future competitiveness. The strategy explicitly states that D&PD will use automation, industrialization, next-generation platforms, and AI to speed up the customer journey and boost success rates. Similarly, the J.POD facilities use modular cleanrooms for intensified bioprocessing, making them versatile and cost-efficient.

Finally, there's the critical internal activity of Executing the Priority Reset for cost optimization. The initial Priority Reset was on track to deliver annualized recurring gross savings of € 40 m. Honestly, the transformation efforts are now expected to generate cost savings that exceed the initial targets announced in May 2025. The company's overall 2025 guidance anticipates Group revenues in the range of € 760 - 800 m, with an Adjusted Group EBITDA target between € 30 - 50 m, and R&D expenditures guided between € 40 - 50 m. The global team supporting these activities is comprised of more than 4,800 experts across Europe and the U.S..

Finance: draft 13-week cash view by Friday.

Evotec SE (EVO) - Canvas Business Model: Key Resources

You're looking at the core assets that power Evotec SE's drug discovery and development engine as of late 2025. These aren't just abstract concepts; they are concrete, quantifiable resources driving their partnerships and pipeline advancement.

• - Proprietary PanOmics and Molecular Patient Databases.
• - J.POD continuous biologics manufacturing technology.
• - Global team of over 4,800 scientific experts.
• - Co-owned R&D pipeline of over 100 assets.
• - Integrated R&D sites across Europe and the U.S.

The foundation of Evotec SE's precision medicine approach rests heavily on its proprietary data platforms. The E.MPD (Evotec's Molecular Patient Database), built using the PanOmics multi-omics platform and the PanHunter software solution, is a growing asset that significantly aims to improve the Probability of Success for all programs in the drug discovery and development pipeline.

The J.POD technology, Evotec SE's continuous biologics manufacturing platform, was validated by a landmark industry transaction after the 9M 2025 reporting period. This technology is central to the Just - Evotec Biologics segment, which saw revenues increase by 11.3% for the first nine months of 2025, reaching € 143.4 m.

The human capital is substantial; as of H1 2025, Evotec SE's global team comprised over 4,800 highly qualified people operating from sites in Europe and the U.S., which function as complementary clusters of excellence.

The R&D pipeline is a key output of these resources. Evotec SE has established a portfolio of more than 100 proprietary and co-owned R&D projects, with the potential for a larger pool of over 140 co-owned product opportunities.

The company is focusing its R&D expenditures for the full year 2025 in a tight range of € 40 - 50 m, reflecting a strategic pivot to an asset-lighter model while maintaining core technology leadership.

Finance: review the Q3 2025 cash burn rate against the projected 2025 R&D spend range by next Tuesday.

Evotec SE (EVO) - Canvas Business Model: Value Propositions

You're looking at the core value Evotec SE delivers to its partners and the market as of late 2025. It's all about speed, proprietary platforms, and flexible deal structures.

• Accelerated journey from concept to cure using integrated platforms.

Evotec SE is driving speed through its integrated platforms, evidenced by the pipeline progress. The company is expecting up to four molecules in its co-developed asset pipeline to enter clinical phase II within the next six to nine months. Evotec SE's global team of more than 4,800 experts operates across sites in Europe and the U.S., providing complementary technology centers of excellence.

• Flexible partnering models (fee-for-service to risk/reward sharing).

The business model supports a spectrum of engagement, from upfront service fees to shared risk and reward. For the first nine months of 2025, Group revenues reached € 535.1 m. The Discovery & Preclinical Development (D&PD) segment, which largely reflects fee-for-service, saw revenues of € 392.1 m, a decrease of (12.3)% year-over-year. Conversely, Just - Evotec Biologics (JEB) revenues grew by 11.3% to € 143.4 m in the same period, showing momentum in the technology-driven segment.

Here's a quick look at the financial evidence of risk/reward sharing in key collaborations:

• Access to high-value, differentiated technology like J.POD.

Access to the proprietary continuous manufacturing platform technology, J.POD, is a key differentiator. This was underscored by the landmark transaction with Sandoz AG in November 2025, which involved an indefinite technology license. The planned sale of the J.POD Toulouse site, announced in H1 2025, carried a purchase price of around US$ 300 m in cash, validating the technology's asset value.

• Potential for high-margin technology license and IP revenue.

The shift toward technology licensing is designed to access higher-margin revenue streams. The Sandoz agreement alone is structured to deliver payments potentially over US$ 650 m, including additional license fees and success-based milestones adding up to more than US$ 300 m in the coming years. Evotec SE expects to benefit from royalties on a portfolio of up to ten biosimilars from this deal, targeting a net-originator sales market exceeding US$ 90 bn.

• Redefining biologics accessibility and affordability.

The focus on scalable technology supports long-term market impact. Evotec SE has confirmed its 2028 outlook, targeting a Group revenues Compound Annual Growth Rate (CAGR) between 8 - 12% for the period 2024-2028. Furthermore, the Adjusted EBITDA margin for 2028 is expected to be above 20%, up from the 2025 guidance range of € 30 - 50 m for Adjusted Group EBITDA.

Evotec SE (EVO) - Canvas Business Model: Customer Relationships

You're looking at how Evotec SE structures its deep, ongoing relationships with its biggest clients. It's not just transactional; it's about embedding their science into the client's pipeline for the long haul.

The core of the relationship strategy involves working with the entire ecosystem, from the largest players down to emerging biotechs. Evotec SE states they work with all Top 20 Pharma companies, alongside over 800 biotechs, academic institutions, and other healthcare stakeholders. This broad base supports their varied service offerings.

The relationship structure is flexible, moving from direct service provision to deep, shared-risk models. This is evident in their asset portfolio, which includes over 100 proprietary R&D assets, the majority of which are co-owned with partners. This co-ownership ties Evotec SE's long-term success directly to the clinical and commercial success of those assets.

The integrated R&D programs are where the big financial milestones live. For example, the strategic preclinical neuroscience partnership with Bristol Myers Squibb (BMS) resulted in payments of US$ 25 m to support continued progression of joint programs as of the 9M 2025 update. Furthermore, progress in the strategic protein degradation collaboration with BMS triggered payments amounting to US$ 75 m in the first half of 2025 alone, and a US$ 20 m research payment was reported in Q2 2025 for neuroscience progress. Also, Evotec SE partner Bayer AG is advancing a program from their 2016 collaboration into a Phase 2 study, with Evotec SE eligible for a milestone payment expected in early 2026 upon first patient dosing.

The shift toward a more asset-lighter model is highlighted by the recent landmark agreement with Sandoz AG, which validates the technology access component of the customer relationship. This deal, signed in November 2025, is potentially worth over US$ 650 m plus royalties on up to 10 biosimilar molecules. The immediate cash component for the sale of Just - Evotec Biologics EU and the technology license was approximately US$ 350 m in cash, with an additional potential of more than US$ 300 m from future milestones and development revenues.

Here's a look at the financial impact of these key strategic relationships as of late 2025:

The standalone fee-for-service (FFS) access to technology is represented by the D&PD segment, which saw its revenues decrease by (12.3)% to € 392.1 m for the first nine months of 2025, reflecting soft market demand. Still, the company expects up to four molecules from its co-owned pipeline to enter clinical Phase II in the next six to nine months.

The relationship management for the largest clients is clearly prioritized, as Evotec SE works with all Top 20 Pharma companies. This dedicated focus supports the integrated R&D programs and the pipeline of co-owned assets.

• Long-term strategic partnerships with major Pharma, including BMS and Bayer AG.
• Integrated R&D programs resulting in over 100 proprietary and co-owned R&D projects.
• Standalone fee-for-service (FFS) access is reflected in the D&PD segment, which generated € 392.1 m in revenue for 9M 2025.
• Dedicated key account management for all Top 20 Pharma companies.

Evotec SE (EVO) - Canvas Business Model: Channels

You're looking at how Evotec SE gets its value propositions-from drug discovery services to proprietary technology-into the hands of its customers, and the numbers from late 2025 show a clear shift toward high-value technology monetization.

Direct sales and business development teams for strategic deals are the engine for Evotec SE's high-value collaborations. This channel targets the biggest players in the industry, ensuring broad market penetration. As of the 9M 2025 update, Evotec SE works with all Top 20 Pharma companies, alongside over 800 biotechs, academic institutions, and healthcare stakeholders. The success of this direct engagement is visible in milestone payments; for instance, the strategic protein degradation partnership with Bristol Myers Squibb (BMS) triggered payments totaling US$ 75 million in the first half of 2025, plus an additional US$ 20 million for the neuroscience collaboration. Post 9M 2025, another US$ 5 million milestone payment from BMS was received following an IND acceptance. These deals validate the direct business development approach.

The company's physical footprint forms the global network of R&D and manufacturing sites, which serves as a tangible channel for its biologics segment. Evotec SE's global team consists of more than 4,800 experts operating from sites located in Europe and the U.S.. The Just - Evotec Biologics (JEB) segment, which leverages this network, showed strong momentum, reporting revenues of €143.4 million for the first nine months of 2025, marking an increase of 11.3% year-over-year. Critically, the non-Sandoz / non-DoD business within JEB is accelerating even faster, showing growth of 105% year over year in the 9M 2025 period.

For platform visibility, the channel relies heavily on scientific publications and conferences, which is how Evotec SE showcases its scientific leadership, though hard numbers for this channel are less direct. The company's expertise spans small molecules, biologics, and cell therapies, supported by proprietary platforms like Molecular Patient Databases, PanOmics, and iPSC-based disease modeling.

The most significant recent channel development is the direct licensing of proprietary technology, exemplified by the Sandoz deal. This transaction is a major pivot toward an asset-lighter model, monetizing the continuous manufacturing platform directly. The agreement, signed in November 2025, involves Sandoz acquiring the Toulouse manufacturing site for approximately US$ 350 million in cash. This upfront payment is part of a potential total exceeding US$ 650 million, plus royalties on a portfolio of up to ten biosimilar molecules. Furthermore, additional license fees and development revenues could surpass US$ 300 million over the next few years. This technology licensing component is expected to favorably transform Evotec SE's earnings profile immediately.

Here's a snapshot of the financial scale tied to these channels as of late 2025:

The direct sales and BD efforts are clearly validated by the sheer size of the partnership deals, like the one with Sandoz, which is a massive channel for technology deployment. Also, the company's reach extends across the entire spectrum of potential drug developers.

• Evotec SE works with Top 20 Pharma companies.
• Evotec SE works with over 800 biotechs.
• Evotec SE has over 4,800 experts globally.
• The Sandoz deal involves royalties on up to ten biosimilar molecules.

Evotec SE (EVO) - Canvas Business Model: Customer Segments

You're looking at the core client base for Evotec SE as of late 2025, which is built on deep, long-term relationships across the drug development spectrum. Honestly, the strategy here is to be indispensable to nearly every major player in the biopharma ecosystem, from the giants to the nimble startups. Evotec SE serves all Top 20 Pharma companies, which is a massive validation of their technology platforms, so you know they're hitting high standards. Plus, they maintain relationships with over 800 biotechnology companies.

The customer base is segmented to capture value at different stages of R&D, moving from fee-for-service work in the Discovery & Preclinical Development (D&PD) segment to more integrated, asset-centric partnerships. The Just - Evotec Biologics (JEB) segment, for instance, is seeing accelerating growth, with its non-Sandoz / non-DoD business growing by 105% year-over-year in the first nine months of 2025. This diversification helps buffer the soft demand seen in the broader early drug discovery service market.

Here's a quick look at the primary customer groups Evotec SE engages with:

The breadth of their client interaction supports a global team of experts. As of June 30, 2025, Evotec SE employed 4,759 people across Europe and the U.S., all focused on delivering these partnerships.

The specific customer segments that drive Evotec SE's business model include:

• - Large Pharmaceutical companies (Top 20 Pharma).
• - Biotechnology and emerging biotech companies (over 800).
• - Academic institutions and governmental organizations (e.g., DoD).
• - Healthcare stakeholders and non-profit foundations.

You should note that while the D&PD segment revenue was down (12.3)% to € 392.1 million for the first nine months of 2025 due to soft demand, the JEB segment revenue grew 11.3% to € 143.4 million, showing where the customer growth momentum is shifting. Finance: draft 13-week cash view by Friday.

Evotec SE (EVO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Evotec SE's business as of late 2025, which is heavily influenced by its ongoing strategic shift. The cost structure is characterized by significant fixed investments necessary to maintain its R&D engine, even as the company aggressively pursues cost discipline.

The high fixed costs are rooted in the infrastructure and the specialized personnel required for drug discovery and development platforms. This is a classic feature of a high-tech service provider where the assets-labs, equipment, and expert teams-demand consistent funding regardless of immediate project volume.

The planned Research & Development expenditures for the full year 2025 are guided to be in the range of € 40 - 50 m. For context, the actual R&D expenses for the first six months of 2025 were reported at € 18.9 m or € 19.0 m, showing a focused capital allocation approach compared to the € 29.3 m spent in the first half of 2024.

Labor costs remain a major component, reflecting the global footprint of Evotec SE's scientific talent. As of the end of 2024, the company employed 4,740 people globally. This was after a reduction of 321 roles, or -6.34%, during 2024. The Priority Reset program, launched in 2024, included a headcount reduction of approximately 400 roles across the global footprint.

The ramp-up of the Just - Evotec Biologics segment introduces specific Costs of Revenue (CoR) tied to manufacturing and operational scaling. For the first six months of 2025, the Costs of revenue specifically for Just - Evotec Biologics amounted to € 92,937 k (or € 92.9 m). This compares to € 81.0 m in CoR for the same segment in the first six months of 2024.

Transformation costs and savings from the Priority Reset program are a key dynamic in the 2025 cost structure. While the program involved one-off costs recognized in 2024 amounting to € 54.9 m, the focus now is on the savings generated. The initial goal for 2025 was annualized recurring gross savings of € 40 m. However, by the nine-month mark in 2025, management cited cost reductions already exceeding € 60 m for the full year.

Here's a quick look at some of the key cost-related financial figures:

The cost structure is actively being managed through the following actions:

• Annualized cost savings from the Priority Reset initiative are targeted at € 40 m for 2025.
• Cost optimization efforts are now expected to generate savings surpassing initial targets, with management citing reductions exceeding € 60 m in 2025.
• The company is pivoting to a more capital-efficient, capex lighter model.
• Cost-out initiatives are anchored to deliver over € 50 m gross savings by 2028, on top of the € 40 m from the Priority Reset.

Evotec SE (EVO) - Canvas Business Model: Revenue Streams

You're looking at how Evotec SE brings in cash as of late 2025, which is clearly shifting toward higher-margin, technology-driven deals, even as the base business faces headwinds. The overall picture for the year shows a revised expectation, reflecting this mix change.

For the full year 2025, Evotec SE has guided group revenues between € 760 - 800 m, revised down from earlier expectations of € 840 - 880 m, though the adjusted EBITDA guidance of € 30 - 50 m remains unchanged, signaling a better revenue mix. As of the 9-month mark in 2025, group revenues stood at € 535.1 m, a decrease of (7.1)% compared to 9M 2024's € 575.7 m.

The revenue streams are segmented, with performance varying significantly between the two core pillars:

• - Service revenues from Discovery & Preclinical Development (D&PD) saw a decrease of (12.3)% for the first nine months of 2025, totaling € 392.1 m, reflecting soft demand in the early drug discovery service market. For H1 2025 specifically, D&PD revenues were € 269.0 m, down (11.0)%.
• - Service revenues from Just - Evotec Biologics (JEB) development and manufacturing showed strong momentum, increasing by +11.3% to € 143.4 m for 9M 2025. For H1 2025, JEB revenues were € 102.2 m, a 15.6% increase year-over-year.

Milestone and upfront payments from strategic partnerships contribute significant, albeit lumpy, revenue. You should note the recent activity with Bristol Myers Squibb (BMS):

• - Evotec SE received a US$ 25 m milestone payment from BMS in October 2025 for progress in their joint neuroscience partnership.
• - Evotec SE also received a US$ 5 m milestone payment from BMS in November 2025 following FDA acceptance of an Investigational New Drug (IND) application for a CELMoD™ candidate,,,.

The most substantial recent financial event impacting future revenue is the strategic transaction with Sandoz, which heavily features technology licensing fees and future product royalties, aligning with the pivot to an asset-lighter model:

This Sandoz deal, signed in November 2025, reconfigures existing contractual commitments and is expected to have a stronger impact from high-margin technology license revenues going forward,,.