Evotec's AI gold mine, Defence Therapeutics' billion-dollar markets, Novo Nordisk's diet revolution: How investors are profiting

Evotec – First quarter 2025

Evotec SE reported consolidated revenue of EUR 200 million for the first quarter, slightly above expectations. While the Shared R&D segment struggled with a 9% decline in revenue to EUR 140.6 million, the Biologics division grew by 11% to EUR 59.4 million. Adjusted EBITDA fell to EUR 3.1 million, compared with EUR 7.8 million in the prior-year period, but remained on track thanks to efficient project management. Despite a persistently weak environment in early drug discovery, the Company reaffirmed its forecast for 2025, which anticipates revenue growth to EUR 840–880 million and an improvement in EBITDA to up to EUR 50 million.

This confidence may be attributed to the key success in the strategic collaboration with Bristol Myers Squibb (BMS) in the field of protein degradation technologies. Scientific breakthroughs in "Molecular Glues," active ingredients for previously incurable diseases, triggered payments of USD 75 million. At the same time, the Biologics division is strengthening its role as a scalable technology provider, supported by funding from the Korean government for antibody therapies for lung diseases. These initiatives highlight Evotec's focus on high-quality services and operational excellence in order to survive in volatile markets.

The Company is planning a strategic realignment. The project portfolio is to be reduced by one-third, non-core investments will be divested, and cost savings of EUR 50 million are targeted by 2028. The focus will remain on AI-driven drug discovery and the biologics business. In the long term, the Company is aiming for average annual revenue growth of 8–12%, combined with an operating profit margin (EBITDA) of over 20%. These measures are intended to help overcome current difficulties. Following the announcement, the share price initially slipped to EUR 6.77, but recently recovered to EUR 7.25.

Defence Therapeutics – New alliances and technology

Defence Therapeutics is intensifying its research into precision cancer therapies through a newly announced partnership with Canadian Nuclear Laboratories (CNL). Together, the two companies will work to optimize the effect of the radioactive isotope actinium-225, whose strong alpha particle radiation is used to destroy cancer cells, using the Company's proprietary Accum® technology. This innovative process aims to release active ingredients directly into the cell nucleus, rather than allowing the drug to be inhibited by biological cell barriers. Initial preclinical studies show promising results. The increased targeting could significantly reduce both drug doses and typical side effects of the therapy while maintaining efficacy. If successfully launched, this opens up considerable economic potential in a global radiopharmaceutical sector that experts predict will be worth around USD 17 billion by 2033.

The project is supported by the latest personnel decision: Dr. Elias Theodorou is taking over strategic management as Chief Operating Officer (COO). The molecular biologist brings over 20 years of experience in cancer and gene therapy research to the Company. His primary responsibility will be to accelerate the commercialization of Accum® technology in the US, with a focus on antibody-drug conjugates (ADCs) and nuclear medicine applications. By establishing its team within the Boston research cluster, the Company hopes to generate synergies through collaborations with leading institutes – a move aimed at solidifying its long-term leadership in cancer medicine.

At the same time, the Company is securing its position with extensive patent approvals. A US patent for Accum® multimers will be in effect until 2043 and protect key technologies such as AccuTOX® and ARM® therapies. Additional property rights in Singapore and existing patents in countries such as Japan strengthen the Company's negotiating position for licensing. Combined with recently acquired funds and participation in prestigious industry events such as the Biotech Showcase™, Defence is underlining its ambitions to move from research to commercial implementation. The course has been set for partnerships and market penetration. There has recently been a significant increase in buying interest in the share, which is currently trading at CAD 1.00.

Novo Nordisk – Positive growth prospects

New study results from Novo Nordisk show promising developments. In the SOUL study, the drug Rybelsus, containing the active ingredient semaglutide, reduced the risk of serious cardiovascular problems by 14% compared to a placebo. The STRIDE study investigated the effect of Ozempic® in people with type 2 diabetes and accompanying circulatory problems. It was observed that the maximum walking distance of participants improved by 13%. This increase in physical performance indicates that the drug not only influences metabolic processes but can also positively support practical aspects of everyday life, such as mobility.

The Company's future prospects are robust. Experts anticipate annual revenue growth of around 13.3% in the diabetes and obesity sectors. This figure is well above the 6.5% the Company would need to achieve to justify its current valuation. The Company itself is even more optimistic in its forecasts for 2025. It is even anticipating a jump in growth of between 16% and 24%, which should further strengthen investor confidence.

To drive innovation, Novo Nordisk is systematically expanding its external partnerships. Through partnerships such as those with Ascendis Pharma and United Biotechnology, the Company is expanding its research scope - for example, by exploring novel active ingredients and innovative delivery techniques. Such strategic alliances strengthen competitiveness, especially in the booming market for weight management and diabetes therapies. In the long term, this networking should ensure that the Company can maintain its leading position. A share currently costs EUR 60.50.

The convergence of technology and biology is transforming the healthcare industry. Evotec scores with strategic partnerships such as Bristol Myers Squibb in the field of protein degradation and, despite a short-term decline in EBITDA, is aiming for a margin increase to over 20% by 2028. Defence Therapeutics is revolutionizing radio-oncology with its Accum® technology and Actinium-225 combinations to capture the billion-dollar market for targeted cancer therapies. Novo Nordisk is driving growth in the diabetes-obesity sector with semaglutide successes in cardiovascular studies and alliances such as Ascendis Pharma. All three players offer long-term potential for investors as pioneers of more precise, more efficient medicine.