Evotec SE (XTRA:EVT) is speaking to defense advisers after a decline in its share price prompted fears about the company?s vulnerability to a takeover, people with knowledge of the matter said. Multiple buyout firms have been studying Hamburg-based Evotec as a potential target, the people said, asking not to be identified because the information is private. Potential suitors are in the early stages of speaking to advisers as they evaluate Evotec and its drug pipeline, according to the people.

Shares of Evotec jumped as much as 11% in early trading in Frankfurt, giving the company a market value of about ?1.4 billion ($1.5 billion). Before June 20, 2024, the stock had fallen 66% year-to-date, with the price hitting the lowest level since March 2017 earlier this week after analysts at Intron Health downgraded the stock to ?sell,? from ?buy.?

No approaches have been made and it?s likely to be at least several months before any formal interest materializes, the people said. The company announced in January that its chief executive officer at the time, Werner Lanthaler, would be stepping down early for personal reasons. Evotec later said Lanthaler had failed to report his stock trades on time, adding the lapse was unrelated to his exit.

Incoming chief executive Christian Wojczewski will take over next month and will likely assess the current situation before making any strategic decisions, the people said. Any major move would need support from Evotec?s biggest shareholders ? Novo Holdings A/S, the parent company of drugmaker Novo Nordisk A/S, as well as Abu Dhabi sovereign fund Mubadala Investment Co.

Evotec has partnered with larger healthcare firms like Novo Nordisk, Bristol-Myers Squibb Co. and Eli Lilly & Co. The company has been developing treatments targeting areas including chronic kidney disease and metabolic disorders.

Deliberations are ongoing and there?s no certainty any transaction will result, the people said. A representative for Evotec declined to comment.