Evotec Announces Restructuring Plan Amid Research Spending Slowdown

Layoffs and Restructuring:
Evotec plans to cut approximately 400 jobs globally, which is about 8% of its workforce, and close several sites as part of its restructuring efforts.

Reason for Restructuring:
The company cites a slowdown in early-stage research spending by pharmaceutical companies as the main reason for the restructuring.

Exit from Gene Therapy:
Evotec will exit the gene therapy business and close its site in Orth, Austria, as part of its strategic realignment.

Financial Performance:
Despite the challenges, Evotec reported positive financial results in certain areas, such as a 50% year-over-year increase in Just-Evotec Biologics revenue.

Market Environment:
The biopharma industry is facing a tough market environment, with factors such as new rules allowing Medicare to negotiate drug prices, a looming patent cliff, and higher interest rates affecting spending.