FRANKFURT (dpa-AFX) - Evotec shares reacted to the announcement of an extended partnership with the Swiss pharmaceutical company Sandoz with a further rise in the share price on Monday afternoon. The shares of the drug discovery company recently rose by 3.3 percent to just over 10 euros and also reached their highest level since mid-May.

Market observers and analysts were positive about the fact that Just Evotec Biologics has expanded its strategic partnership with Sandoz for the development and commercial production of biosimilars. In return, Evotec's biologics segment will receive funding and further payments from Sandoz contingent on the achievement of development milestones starting in 2025.

RBC analyst Charles Weston praised the expansion of the partnership, which will improve future capacity utilization. In addition, Sandoz is a large and important customer, which is why the announcement emphasizes the capabilities of the biologics segment.

Market expert Andreas Lipkow also referred to the sharp fall in the share price until mid-June, when it reached its lowest level in seven years, and the slight recovery since then. "The company has become a target for potential takeover speculation following the sharp fall in the share price. At the same time, it is now apparent that Evotec is also approaching interesting collaborations or deepening existing partnerships."

According to Lipkow, the doubts following the change of CEO should also increasingly evaporate. "The field of biosimilars is a very interesting area for pharmaceutical companies, as it allows them to save considerable time and money. Evotec is very well established in this field and has often excelled in the past."

The shares of the pharmaceutical drug researcher have come under pressure since the beginning of the year and have since lost around 53 percent. At the beginning of January, Werner Lanthaler's surprising resignation from his post as CEO triggered panic selling. In spring, Evotec spooked investors again when the profit reported for 2023 was just as disappointing as the much more cautious outlook for 2024./ck/jsl/he