The German biotech company Evotec plans to cut 400 jobs worldwide, announced on Wednesday. It is the latest in a series of Layoffs in the biopharmaceutical industry The BioSpace reported this week. We’ve identified 10 job cuts so far, which, along with the week of February 26, represents the highest number of layoffs in a single week in 2024. With the new announcements, a total of 17 companies have announced layoffs in August, which already surpasses the totals for May, June, and July, and we’re only halfway through the month.
If the wave of layoffs does not slow down in the next two weeks, August will reach the level of the beginning of the year. BioSpace From January to April, at least 20 companies announced staff cuts each month, with the highest number being 27 companies in January.
The figures will probably not surprise biotech and pharmaceutical experts, as almost half (43%) of respondents are unemployed, according to a BioSpace Employment Trends Report was published last month. The report also found that nearly a quarter of companies surveyed (21%) are planning layoffs in the second half of the year.
Possible layoffs at Evotec reflect difficult first half of the year
After a Wednesday SEC FilingEvotec employs more than 5,000 people. The company provides pipeline co-creation partnerships and contract research/contract development and manufacturing services for drug discovery and development. If the company cuts 400 jobs, this would represent approximately 8% of its workforce, including employees at Evotec’s US headquarters in Princeton, New Jersey.
In its announcement on Wednesday, Evotec reported that total revenues from joint research and development in the first six months of 2024 fell 7% year-on-year, falling from €324.8 million ($357.6 million) in the first half of 2023 to €302.4 million ($332.9 million) in the same period this year.
Evotec CEO Christian Wojczewski noted in the announcement that revenues and profitability in the first six months of 2024 were more challenging than expected.
“We are operating in a more challenging market environment, mainly due to the slowdown in early-stage research and development spending,” he said. “This has forced us to accelerate our transformation toward sustainable, profitable growth, better leverage our strengths, increase productivity, reduce complexity and strengthen the organization for its next phase of growth.”
Some of the challenges of the first half of the year arose in the first three months of the year, according to a May study. notice. The company reported that total revenue from joint research and development decreased 23% in the first quarter compared to the same period last year, reflecting a difficult market environment for transactional business. It also announced that it had completed the closure of chemistry activities in Marcy (Lyon), France, and would close its site in Orth, Austria, and exit gene therapy.
Nevertheless, Evotec has reported positive financial results this year. In its announcement on Wednesday, it said that for the first half of 2024 Just-Evotec Biologics Revenue increased by 50% year-on-year, reaching EUR 88.5 million (USD 97.4 million). Group revenue increased by 2% year-on-year, reaching EUR 390.8 million (USD 430.2 million).
Also worth mentioning: Evotec announced on Tuesday progress in the strategic partnership with Bristol-Myers Squibb in connection with the development of a molecular glue-based pipeline. The company noted that performance and program-related successes triggered payments of USD 75 million to Evotec.
