Evogene Announces Q2 2024 Financial Results

Evogene Ltd., a leader in computational biology, has disclosed its financial results for the second quarter of 2024, ending on June 30. The company aims to transform the development of life-science products using advanced AI technologies. CEO Ofer Haviv highlighted Evogene's vision of pioneering life-science solutions to enhance quality and longevity of life. Evogene has engineered three innovative AI tech-engines—MicroBoost AI, ChemPass AI, and GeneRator AI—targeting product developments based on microbes, small molecules, and genetic elements, respectively.

Evogene employs a collaborative business strategy to harness the value of its AI tech-engines. By partnering with specialists in various fields through licensing or collaboration, Evogene seeks to jointly develop revolutionary products while minimizing financial and developmental risks. The company operates through four subsidiaries, each focusing on different market segments, alongside multiple partnerships with leading firms in other areas not covered by its subsidiaries.

Casterra Ag Ltd., one of Evogene's subsidiaries, focuses on creating an integrated solution for large-scale commercial cultivation of castor to meet global demands for castor oil, mainly for the biodiesel industry. Utilizing the GeneRator AI tech-engine, Casterra aims to develop superior castor seed varieties. On June 25, Casterra announced a $440,000 purchase order to supply castor seeds to a new African country. This order from an existing customer enhances Casterra's presence in the biofuel market. Casterra also completed a successful castor seed season in Brazil, with shipments scheduled for the third quarter of 2024. Castor seeds produced in Brazil and Africa in 2024 are expected to fulfill orders totaling approximately $8.4 million by the year's end.

Lavie Bio Ltd., another subsidiary, advances microbiome-based agricultural products using the MicroBoost AI tech-engine. On July 2, Lavie Bio announced the commercial expansion of its bio-inoculant Yalos™ to winter wheat, promising to double its market potential. On July 22, Lavie Bio achieved a significant milestone in collaboration with ICL, developing bio-stimulant solutions for row crops under extreme weather conditions. This collaboration leverages AI to identify over a dozen novel microbes within a year. Lavie Bio's pipeline is progressing as planned, with field trials initiated in Q2 across most programs, with results expected in Q4.

Biomica Ltd., focused on microbiome-based therapeutics, reported promising Phase 1 results for BMC128, in combination with nivolumab, for treating renal cell carcinoma (RCC), non-small cell lung cancer (NSCLC), and melanoma. These results, presented at the 2024 ASCO conference, showed 72% of treated patients experiencing clinical benefits, with 55% showing sustained benefits for over 24 months. The company continues to evaluate BMC128 in subsequent clinical phases.

Financially, Evogene reported consolidated cash, cash equivalents, and short-term bank deposits of approximately $20.9 million as of June 30, 2024. This figure excludes $8.4 million from open Casterra purchase orders. The consolidated cash usage in Q2 2024 was approximately $5.7 million. For 2024, excluding Lavie Bio and Biomica, projected cash usage is expected to be around $8.0 million, marking a 36% reduction from 2023.

Revenues for the first half of 2024 were approximately $5.1 million, a notable increase from $1.3 million in the same period the previous year, driven primarily by Lavie Bio's licensing agreement with Corteva and AgPlenus's new collaboration with Bayer. Revenues for Q2 2024 were approximately $0.9 million, up from $0.7 million in Q2 2023. Continued revenue growth is anticipated in the second half of 2024, primarily driven by Casterra's seed-order supply forecast.

Research and development expenses, net of non-refundable grants, for H1 2024 were approximately $8.8 million, down from $10.2 million in H1 2023. The decline is attributed to the cessation of Canonic's activities and reduced development expenses in Biomica. Sales and marketing expenses for H1 2024 were approximately $1.9 million, slightly up from $1.7 million in H1 2023, due to increased activities in Casterra. General and administrative expenses for H1 2024 decreased to approximately $3.2 million from $3.3 million in the same period last year.

Evogene's operating loss for H1 2024 was approximately $10.2 million, a decrease from $14.7 million in H1 2023, due to increased revenues. The net loss for H1 2024 was approximately $9.8 million, compared to $14.8 million in the same period the previous year.