Why Germany-Based Life Science Company Evotec Shares Are Falling Today

Evotec SE EVO shares are trading lower on Thursday in the premarket session.

Yesterday, the company said CEO Werner Lanthaler stepped down as CEO. Lanthaler will not continue to serve until the end of his current term, for personal reasons. 

The company, however, confirmed guidance for 2023. On Nov. 8, the company said revenues expected to be in the range of €750 million-€790 million in 2023, or €765 million-€805 million at constant exchange rates. 

Today, the company announced an AI-powered integrated multi-target collaboration with French-American tech bio company Owkin to focus on oncology, immunology, and inflammation.

The collaboration brings together highly complementary platforms and expertise for new therapeutics, the company said in a release. 

The partnership combines Owkin's AI target discovery capabilities with Evotec's integrated end-to-end shared R&D platform. 

AI-powered platforms will accelerate Owkin's novel programs from the discovery phase to the clinic. 

The partnership also enables Owkin to maximize capital efficiency while reducing risk. 

Evotec will receive R&D funding from Owkin and is eligible to earn performance milestone payments and royalties on product sales.

"Evotec's broad capabilities in drug discovery, which range all the way from target validation through to IND-enabling studies, coupled with their understanding of artificial intelligence and its implementation in their workflows make them an ideal partner for us," Thomas Clozel, Co-founder and CEO of Owkin, remarked.

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Price Action: EVO shares are trading lower by 10.3% to $9.43 premarket on the last check Thursday.