Evogene Q1 2024 Financial Results

Evogene Ltd., a leading computational biology firm, has released its financial results for Q1 2024, showcasing notable growth and strategic advancements across its subsidiaries. The company reported a significant increase in revenue and a marked reduction in net loss, providing an optimistic outlook for the remainder of the year.

Financial Performance Highlights

For the first quarter of 2024, Evogene reported revenues of $4.2 million, a substantial rise from $0.6 million in the same period in 2023. This increase is largely attributed to contributions from Lavie Bio's licensing agreement with Corteva and a new partnership between AgPlenus and Bayer. The company anticipates ongoing revenue growth throughout 2024.

Evogene's net loss also showed improvement, narrowing to $3.8 million from $7.0 million in the first quarter of 2023. The reduction in net loss is primarily due to increased revenues and higher financial income, even though the company recorded $519,000 in other expenses related to ceasing Canonic's operations.

Operational and Strategic Developments

Canonic Shutdown: Evogene decided to terminate its subsidiary Canonic, which focused on the medical cannabis market. This move is anticipated to save approximately $1.5 million annually, allowing the company to allocate resources to more promising ventures, such as Casterra.

Casterra's Expansion: Casterra Ag Ltd., which develops elite castor seed varieties for the biodiesel industry, is making significant strides. The company secured agreements with African and Brazilian growers to deliver 900 tons of castor seeds by the end of 2024, expected to meet all existing orders.

Biomica's Clinical Trials: Biomica Ltd. has made headway in its clinical trials for BMC128, a microbiome-based immuno-oncology drug. The company completed Phase I trial enrollment and will present preliminary results at the 2024 ASCO Annual Conference. Biomica is preparing for Phase 2 of the trial, aiming to start in 2025.

Lavie Bio's Collaborations and Sales: Lavie Bio Ltd., specializing in microbiome-based agricultural products, reported several advances. In 2024, the company received $2.5 million from Corteva and entered into a new development agreement with Syngenta for biological insecticides. Lavie Bio also extended trials for bio-fungicides with Bayer. The company is expanding the market reach of its bio-inoculant product, Yalos™, in the US and Canada.

AgPlenus's New Collaborations: AgPlenus Ltd., which focuses on sustainable crop protection products, announced a collaboration with Bayer to develop a new herbicide with broad-spectrum capabilities. This deal includes upfront payments, research funding, milestone payments, and future royalties. Additionally, AgPlenus achieved a milestone under an existing agreement with Corteva, focusing on optimizing herbicide candidates for commercial use.

Financial Management

As of March 31, 2024, Evogene held $26.6 million in cash, cash equivalents, and short-term deposits, down from $31.1 million at the end of 2023. The company’s Q1 2024 cash usage was approximately $4.5 million. Excluding Lavie Bio and Biomica, cash usage stood at $3.4 million. For the full year, Evogene projects cash usage of $8.0 million, a 36% reduction from 2023.

R&D and Other Expenses

Research and development expenses were stable at $4.8 million for Q1 2024, consistent with the previous year. Sales and marketing expenses increased to $992,000 due to heightened activities for Casterra and Lavie Bio. General and administrative expenses rose to $1.7 million, mainly due to non-cash compensation for subsidiary CEOs. The decision to cease Canonic's operations led to other expenses of $500,000.

Future Outlook

Evogene remains committed to leveraging its AI-driven tech-engines—MicroBoost AI, ChemPass AI, and GeneRator AI—across diverse market segments. The company’s strategic partnerships and collaborations aim to maximize the potential of its technologies while mitigating financial and developmental risks.

Overall, the company's Q1 2024 financial results and operational updates reflect a promising trajectory, driven by innovative advancements and strategic realignments. Evogene is well-positioned for continued growth and success in the burgeoning fields of computational biology and life sciences.

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