"Evotec's share price plummets by double digits, Fresenius relies on exemptions from US tariffs, and Novo Nordisk feels the pressure of competition.
Even a potentially higher-than-expected sale price of more than $650 million for a production facility in Toulouse couldn't provide lasting support for the Hamburg-based biotech company Evotec on Wednesday. The company, listed on the S-Dax and the American Nasdaq, which has been in crisis for some time, temporarily dropped by around twelve percent – and was by far the worst-performing stock in the index, which was down by just over one percent.
Ultimately, it was the disappointing operating results that deterred investors and analysts. In the first nine months of the year, Evotec had to contend with a decline in revenue and an operating loss. The company attributed the disappointing results to persistently weak demand in its early-stage drug discovery services business. A look at the share price performance over the past year, compared to the S-Dax, also offers little encouragement for investors. Analysts were equally disappointed. Evotec's revenue in the third quarter fell 13 percent short of the consensus estimate, noted analyst Charles Weston of RBC Bank. He summarized it as a "dismal third quarter."
The healthcare group Fresenius from Bad Homburg, on the other hand, delivered better results on Wednesday and raised its profit forecast thanks to strong business in its pharmaceutical division. "In unpredictable and sometimes even volatile times, we have demonstrated strength and reliability," said CEO Michael Sen. Adjusted operating profit (EBIT) rose by four percent in the third quarter to 574 million euros, exceeding analysts' expectations. Revenue increased by three percent to 5.48 billion euros. Net profit amounted to 351 million euros, compared to 312 million euros in the previous year.
Analysts were correspondingly positive. The Swiss major bank UBS maintained its "Buy" rating on Fresenius with a price target of 57 euros. The Bad Homburg-based company exceeded expectations and raised its targets, wrote Graham Doyle. The analyst at the US bank Citigroup expressed a similar view, also maintaining a "Buy" rating for Fresenius with a price target of 52 euros. Fresenius surpassed expectations in the third quarter, wrote Veronika Dubajova, seeing this as a continuation of the positive reporting trend. Despite this, the stock was down in a generally negative market environment.
Meanwhile, Fresenius is watching developments in the US closely. CEO Sen hopes that the American drug tariffs will not apply to generic drugs, which Fresenius manufactures through its subsidiary Kabi. While Fresenius conducts the majority of its business in Europe, North America is an important market. Due to Trump's tariff policies, geostrategic issues are becoming increasingly important for pharmaceutical companies. According to experts at Fitch, locally produced medicines will be the decisive lever in price negotiations with governments in the future, as stated in a recently published study.
Therefore, the announcement by Novo Nordisk that the company had reached an agreement with the US government health insurance program Medicare on a price for its key medications Ozempic and Wegovy initially brought relief to investors. Some analysts considered the agreement less burdensome than feared. The new price is to apply from 2027 onwards.
However, this positive news could not mask the disappointing quarterly results. The Danish company had to lower its forecast once again. The company, which had temporarily become the most valuable listed company in Europe thanks to the success of its weight-loss injection Wegovy, is facing increasingly strong competition. Since its peak in June 2024, its market capitalization has fallen by around 70 percent. After initial losses, the stock reversed course. "On Wednesday, it edged slightly into positive territory." [1]
1. Pharma hat zu kämpfen. Frankfurter Allgemeine Zeitung; Frankfurt. 06 Nov 2025: 28. Von Ilka Kopplin, Frankfurt
Komentarų nėra:
Rašyti komentarą