Evotec's Shares Fall After Cyberattack Impact

Shares in Evotec, the German biotechnology company, experienced a decline on Friday due to the negative effects of a cyberattack during the second quarter. By 0956 GMT, the shares had dropped by 4.5% to EUR22.72, after initially falling more than 5% earlier in the day.

As a result of the cyberattack, Evotec has revised its full-year guidance for 2023. The company now expects revenue to be between 750 million euros and 790 million euros ($823.5 million-$867.4 million), compared to the previous forecast range of EUR820 million-EUR840 million.

Evotec has also lowered its forecast for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The new estimate ranges from EUR60 million-EUR80 million, whereas the previous estimate was EUR115 million-EUR130 million.

Despite these setbacks, Evotec emphasizes that its underlying business dynamic remains intact. The company took immediate action in response to the cyberattack, temporarily shutting down external-facing systems to protect partners and stakeholders. This allowed them to ensure the integrity of scientific data was not compromised. Operations resumed at the end of April, with productivity reaching approximately 50% in May and over 80% in June.

Although the lowered guidance for 2023 is concerning, Evotec remains committed to its Action Plan 2025, which aims for revenue exceeding EUR1 billion and adjusted EBITDA of more than EUR300 million.

For the first half of the year, Evotec estimates revenue to be above EUR370 million. While some missed revenue may be recoverable in the next six months, market conditions are not expected to improve, according to the company.

The cyberattack has resulted in one-off net costs of approximately EUR25 million for Evotec, as they manage the impact of the incident.