Evogene Reports Fourth Quarter and Full Year 2023 Financial Results
- Revenue growth from $1.7 million in 2022 to $5.6 million in 2023.
- Successful collaborations with industry leaders like Corteva, Bayer, and Syngenta.
- Securing significant grants and financing rounds for subsidiary advancements.
- Expansion of production capabilities and successful product deliveries by subsidiaries.
- Positive clinical trial results and advancements in microbiome-based therapeutics.
- Consolidated cash reserves of approximately $31.1 million as of December 31, 2023.
- None.
Insights
The significant revenue growth reported by Evogene from approximately $1.7 million in 2022 to around $5.6 million in 2023 is a robust indicator of the company's expanding market presence and the successful monetization of its AI tech-engines. This substantial increase, largely attributable to licensing fees and product sales, suggests a positive trajectory for the company's financial health. Furthermore, the reduction in projected cash burn from $23.1 million in 2023 to $21 million in 2024, alongside the anticipated decrease in cash usage to about $8 million, excluding certain subsidiaries, reflects a strategic optimization of expenditures. The lack of bank debt enhances the company's balance sheet resilience, potentially increasing its appeal to investors.
Evogene's collaborations with industry leaders such as Bayer, Corteva and Syngenta, as well as securing significant seed orders from a global oil and gas company, underscore the company's strategic positioning within the life sciences sector. These partnerships not only validate Evogene's proprietary platforms but also expand its influence across multiple market segments. The company's ability to secure a €1.2 million EU grant and the successful completion of Casterra's seed deliveries highlight its competitive edge in innovation and sustainability, which are increasingly valued in the global market. The expansion of Lavie Bio's sales territory and product scope following regulatory approvals and field trials demonstrate a proactive approach to market penetration and diversification.
The advancements in clinical trials, particularly Biomica's BMC128 progressing through Phase 1 and the completion of enrollment for its immuno-oncology drug trials, are critical milestones. These developments have implications for the company's long-term pipeline and potential market share in the microbiome-based therapeutics space. The positive interim results from Biomica's IBS program could signal a breakthrough in treatment options for a condition with significant unmet medical needs. The strategic decision to reduce investment in Canonic due to challenging market conditions in the medical cannabis sector demonstrates Evogene's adaptability and risk management capabilities. The potential transfer of Canonic's operations may further streamline Evogene's focus on its core competencies.
Conference call and webcast: today, March 7, 2024, 9:00 am E.T.
+1-888-407-2553 or +972-3- 9180608 I https://veidan.activetrail.biz/evogeneq4-2023
REHOVOT,
Mr. Ofer Haviv, Evogene's President, and Chief Executive Officer, stated, "The Evogene Group has experienced a transformative year with industry perception of our technology and products translating into growing collaborations with world-leading companies. The number and caliber of partnerships Evogene and our subsidiaries have formed speak volumes: Lavie Bio with Corteva, ICL, and Syngenta; AgPlenus with Bayer and Corteva; Casterra with a global oil and gas company; Biomica with an investment by Shanghai Healthcare Capital; and Evogene with Verb Biotics and Colors, underscore our growing influence in the life science sector.
This collaboration momentum affirms the value of Evogene's AI tech-engines: MicroBoost AI, ChemPass AI, and GeneRator AI, built on our CPB platform developed over a decade. Looking forward, we anticipate further partnerships with industry leaders, increased sales of subsidiary products like Casterra's elite castor varieties and Lavie Bio's bio-inoculant Yalos, and expansion beyond our current sectors.
These efforts not only validate our contributions but also bolster our financial position through various revenue streams, reflected in today's reported revenues of approximately
Evogene main accomplishments in 2023:
- Partnership with Verb Biotics: Evogene collaborated with Verb Biotics, an innovative probiotics company, to identify and design probiotic bacteria that produce sustainable quantities of microbial metabolites to enhance human health and vitality in the rapidly growing probiotics market. Evogene will utilize MicroBoost AI tech-engine in the scope of this collaboration.
- Collaboration with Colors Farm and Ben Gurion University: Evogene partnered to pioneer crustacean gene editing technology aimed at enhancing crustacean traits. This collaboration, supported by a grant from the Israel Innovation Authority, utilizes Evogene's GeneRator AI tech-engine.
- EU Grant for Ag-Seed Division: Evogene secured a
€1.2 million EU grant to develop oil-seed crops with enhanced CO2 assimilation and drought tolerance. The program, named the EIC 2022 Horizon program, supports businesses focusing on climate-focused and sustainable crop development.
Evogene subsidiaries' main accomplishments:
Casterra Ag Ltd. - provides an integrated end-to-end solution for large-scale castor bean cultivation, utilizing Evogene's GeneRator AI tech-engine:
- Seed Orders from Leading Oil and Gas Company: Casterra received seed orders totaling
$11.3 million Africa , supporting the bio-diesel industry's growth. - Successful Delivery of High-Yield Castor Seeds: Casterra has successfully delivered its first shipment of high-yield, high-oil castor seeds from
Brazil andZambia toAfrica , valued at approximately$1 million - Expansion of Production Capabilities: In March 2023, the company disclosed that it has signed agreements with existing and new seed producers in
Brazil andAfrica to boost its castor seed production capabilities in 2024. These agreements are projected to increase production by approximately 400 tons. The company expects that these new agreements will allow it to fulfill its existing seed orders and establish a long-term production infrastructure.
AgPlenus Ltd. - aims to develop and commercialize next-generation crop protection products, utilizing Evogene's ChemPass AI tech-engine:
- Licensing and Collaboration Agreement with Bayer: AgPlenus signed in February 2024 a licensing and collaboration agreement with Bayer's Crop Science division to utilize AgPlenus' AI-driven computational modeling technology for designing and optimizing molecules targeting the APTH1 protein, a new mode of action identified by AgPlenus. Bayer has exclusive rights for developing and commercializing products resulting from this collaboration, with AgPlenus receiving an upfront payment, ongoing research funding, milestone payments, and royalties.
- Milestone Achievement with Corteva: AgPlenus reached a milestone in the collaboration with Corteva for developing novel herbicides, successfully identifying a new family of molecules with herbicidal effects through a novel mode of action, APCO-12. The collaboration will continue to optimize these molecules towards commercial-level products, utilizing AgPlenus' computational technology powered by Evogene's ChemPass AI tech engine.
Biomica Ltd. - develops microbiome-based therapeutics, leveraging Evogene's MicroBoost AI tech-engine:
- Successful Financing Round: Biomica completed a
$20 million $10 million - Advancements in Clinical Trials: BMC128, Biomica's flagship product targeting immune-oncology patients, progressed through Phase 1 clinical trials, assessing its safety and tolerability in combination with Bristol Myers Squibb's Opdivo® immunotherapy. Biomica expanded its operations by opening a second site at The Davidoff Cancer Center in
Israel to facilitate patient recruitment. - Completion of Phase I Trial Enrollment: Biomica reached a significant milestone in January 2024 by completing Phase I trial enrollment for its microbiome-based immuno-oncology drug, with promising preliminary results. Initial data readout is expected in 2024.
- Positive Interim Results in IBS Program: Biomica reported positive interim results from pre-clinical studies on its IBS program in July 2023, showing the efficacy of Biomica's live bacterial consortia, BMC426 and BMC427, in alleviating visceral pain, a major symptom of IBS. This presents promising new treatment avenues, with plans for further pre-clinical studies to prepare for clinical trials.
Lavie Bio Ltd. - develops and commercializes microbiome-based ag-biological products, utilizing Evogene's MicroBoost AI tech-engine:
- Licensing Agreement with Corteva: Lavie Bio entered a licensing agreement granting exclusive rights to Corteva for advancing and commercializing Lavie Bio's lead bio-fungicides, LAV311 and LAV312, targeting fruit rots. This agreement, preceded by two years of independent field validation trials, included an initial payment of
$5 million - Collaboration with Syngenta: Lavie Bio announced an agreement with Syngenta for the discovery and development of new biological insecticidal solutions. Leveraging Lavie Bio's technology platform, this collaboration aims to rapidly identify and optimize bio-insecticide candidates, further strengthening Lavie Bio's position in the agricultural market.
- Achievements of Yalos™ Bio-Inoculant:
- Obtained regulatory approval from the Canadian Food Inspection Agency (CFIA), significantly expanding its sales territory.
- Expanded scope to include durum and barley varieties across the
- Secured an exclusive distribution agreement with WinField United Canada, focusing on spring wheat, durum, and barley crops in key Canadian agricultural regions.
Canonic Ltd. - provides tailored medical cannabis products to optimize consumer well-being, utilizing Evogene's GeneRator AI tech-engine.
In the third quarter of 2023, Evogene announced that it had decided to reduce its investment in Canonic in response to challenging market conditions in the medical cannabis sector. Currently, Evogene is announcing advanced discussions regarding the potential transfer of Canonic's operations to a third party. However, the completion and terms of such a transfer remain uncertain.
Consolidated Financial Results Summary
- As of December 31, 2023, Evogene's consolidated cash, cash equivalents, and short-term bank deposits totaled approximately
$31.1 million $12.4 million $12.7 million $6.0 million - In July 2023, Evogene entered into securities purchase agreements with institutional investors in a registered direct offering of shares only. The gross proceeds from the offering were approximately
$8.5 - In 2024, Evogene anticipates a significant decrease in cash usage to approximately
$8 million $12.5 million $21 million $23.1 million - The company does not have any bank debt.
- Revenues for 2023 were approximately
$5.6 million $1.7 million $2.5 million - In the fourth quarter of 2023 R&D expenses, reported net of non-refundable grants, reached approximately
$5.5 million $4.8 million $20.8 million - In the fourth quarter of 2023, sales and marketing expenses totaled approximately
$1.0 million $1.2 million $3.6 million $3.9 million - In the fourth quarter of 2023, general and administrative expenses were approximately
$1.2 million $1.7 million $6.1 million $6.5 million - Other income - In the fourth quarter of 2022, the company received
$3.5 million - In the fourth quarter of 2023, the company's operating loss increased to approximately
$7.6 million $3.8 million $26.5 million $26.9 million - In the fourth quarter of 2023, the company's net financing income amounted to approximately
$287 thousand $6 thousand $521 thousand $2.8 million U.S. Dollar and the New Israeli Shekel exchange rates, changes in the value of marketable securities, and interest income compared to the previous year. - In the fourth quarter of 2023, the company reported a net loss of approximately
$7.3 million $3.8 million $26.0 million $29.8 million
For the financial tables, click here
For Evogene's updated presentation, click here.
Conference Call & Webcast Details:
Date: March 7, 2024
Time: 9:00 am E.T.; 16:00
To join the conference call, please use the following numbers: +1-888-407-2553 toll-free from
A replay of the conference call will be available approximately two hours following the completion of the call. To access the replay, please dial +1-888-326-9310 toll-free from
About Evogene:
Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN) is a computational biology company leveraging big data and artificial intelligence, aiming to revolutionize the development of life-science-based products by utilizing cutting-edge technologies to increase the probability of success while reducing development time and cost.
Evogene established three unique tech-engines - MicroBoost AI, ChemPass AI and GeneRator AI. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).
Evogene uses its tech-engines to develop products through strategic partnerships and collaborations, and its five subsidiaries including:
- Biomica Ltd. (www.biomicamed.com) developing and advancing novel microbiome-based therapeutics to treat human disorders powered by MicroBoost AI;
- Lavie Bio Ltd. (www.lavie-bio.com) - developing and commercially advancing, microbiome based ag-biologicals powered by MicroBoost AI;
- AgPlenus Ltd. (www.agplenus.com) -developing next generation ag chemicals for effective and sustainable crop protection powered by ChemPass AI;
- Canonic Ltd. (www.canonicbio.com) – developing medical cannabis products based on decoding plant genetics for optimized therapeutic effect powered by GeneRator AI; and
- Casterra Ag Ltd. (www.casterra.co)– developing and marketing superior castor seed varieties producing high yield and high-grade oil content, on an industrial scale for the biofuel and other industries powered by GeneRator AI.
For more information, please visit: www.evogene.com.
Forward Looking Statements
This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "hopes" "intends", "anticipates", "plans", "believes", "scheduled", "estimates" or words of similar meaning. For example, Evogene is using a forward-looking statement in this press release when it discusses further partnerships with industry leaders, increased sales of subsidiary products like Casterra's elite castor varieties and Lavie Bio's bio-inoculant YalosTM, expansion beyond its current sectors, continued revenue growth for the Evogene group in 2024, expected decrease in cash usage in 2024, potential transfer of Canonic's operations to a third party, increased production of Casterra, commercialization of AgPlenus and Lavie Bio's products and the timing and results of the clinical trials and pre-clinical trials of Biomica's products. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, the current war between
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
December 31, | December 31, | |||
2023 | 2022 | |||
(Unaudited) | (Audited) | |||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 20,772 | $ 28,980 | ||
Short-term bank deposits | 10,291 | - | ||
Marketable securities | - | 6,375 | ||
Trade receivables | 357 | 348 | ||
Other receivables and prepaid expenses | 2,973 | 1,482 | ||
Inventories | 76 | 566 | ||
34,469 | 37,751 | |||
LONG-TERM ASSETS: | ||||
Long-term deposits and other receivables | 28 | 74 | ||
Deferred taxes | - | 94 | ||
Right-of-use-assets | 980 | 1,568 | ||
Property, plant and equipment, net | 2,455 | 2,499 | ||
Intangible assets, net | 13,169 | 14,140 | ||
16,632 | 18,375 | |||
$ 51,101 | $ 56,126 | |||
CURRENT LIABILITIES: | ||||
Trade payables | $ 1,785 | $ 1,036 | ||
Employees and payroll accruals | 2,537 | 1,987 | ||
Lease liability | 853 | 884 | ||
Liabilities in respect of government grants | 388 | 79 | ||
Deferred revenues and other advances | 362 | 22 | ||
Other payables | 1,019 | 1,617 | ||
6,944 | 5,625 | |||
LONG-TERM LIABILITIES: | ||||
Lease liability | 285 | 932 | ||
Liabilities in respect of government grants | 4,426 | 4,665 | ||
Other advances | 393 | - | ||
Convertible SAFE | 10,368 | 10,114 | ||
15,472 | 15,711 | |||
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares of NIS 0.02 par value: Authorized – 150,000,000 ordinary shares; Issued and | 286 | 235 | ||
Share premium and other capital reserve | 269,353 | 261,402 | ||
Accumulated deficit | (257,586) | (233,707) | ||
Equity attributable to equity holders of the Company | 12,053 | 27,930 | ||
Non-controlling interests | 16,632 | 6,860 | ||
Total equity | 28,685 | 34,790 | ||
$ 51,101 | $ 56,126 | |||
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | ||||||||
Year ended December 31, | Three months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(Unaudited) | (Audited) | (Unaudited) | ||||||
Revenues | $ 5,640 | $ 1,675 | $ 578 | $ 660 | ||||
Cost of revenues | 1,692 | 909 | 398 | 364 | ||||
Gross profit | 3,948 | 766 | 180 | 296 | ||||
Operating expenses (income): | ||||||||
Research and development, net | 20,777 | 20,792 | 5,545 | 4,753 | ||||
Sales and marketing | 3,611 | 3,933 | 1,033 | 1,168 | ||||
General and administrative | 6,068 | 6,482 | 1,230 | 1,657 | ||||
Other income | - | (3,500) | - | (3,500) | ||||
Total operating expenses, net | 30,456 | 27,707 | 7,808 | 4,078 | ||||
Operating loss | (26,508) | (26,941) | (7,628) | (3,782) | ||||
Financing income | 1,486 | 516 | 358 | 169 | ||||
Financing expenses | (965) | (3,329) | (71) | (163) | ||||
Financing income (expenses), net | 521 | (2,813) | 287 | 6 | ||||
Loss before taxes on income | (25,987) | (29,754) | (7,341) | (3,776) | ||||
Taxes on income (tax benefit) | (33) | 90 | (4) | 45 | ||||
Loss | $ (25,954) | $ (29,844) | $ (7,337) | $ (3,821) | ||||
Attributable to: | ||||||||
Equity holders of the Company | (23,879) | (26,638) | (6,601) | (2,998) | ||||
Non-controlling interests | (2,075) | (3,206) | (736) | (823) | ||||
$ (25,954) | $ (29,844) | $ (7,337) | $ (3,821) | |||||
Basic and diluted loss per share, | $ (0.52) | $ (0.65) | $ (0.13) | $ (0.07) | ||||
Weighted average number of shares | 45,685,619 | 41,210,184 | 50,584,888 | 41,234,438 | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Year ended December 31, | Three months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(Unaudited) | (Audited) | (Unaudited) | ||||||
Cash flows from operating activities: | ||||||||
Loss | $ (25,954) | $ (29,844) | $ (7,337) | $ (3,821) | ||||
Adjustments to reconcile loss to net cash used in | ||||||||
Adjustments to the profit or loss items: | ||||||||
Depreciation | 1,641 | 1,513 | 418 | 396 | ||||
Amortization of Intangible assets | 971 | 1,067 | 245 | 245 | ||||
Share-based compensation | 1,877 | 1,186 | 113 | 291 | ||||
Revaluation of convertible SAFE | 254 | 114 | 77 | 114 | ||||
Net financing expenses (income) | (666) | 2,979 | (460) | (149) | ||||
Decrease in accrued bank interest | - | 7 | - | - | ||||
Gain from sale of property, plant and equipment | (26) | - | - | - | ||||
Taxes on income (tax benefit) | (33) | 90 | (4) | 45 | ||||
4,018 | 6,956 | 389 | 942 | |||||
Changes in asset and liability items: | ||||||||
Decrease (increase) in trade receivables | (9) | (67) | 988 | 104 | ||||
Decrease (increase) in other receivables | (1,445) | 1,113 | (1,025) | 670 | ||||
Decrease (increase) in inventories | 490 | (474) | 37 | (401) | ||||
Decrease (increase) in deferred taxes | 94 | (94) | 94 | (94) | ||||
Increase (decrease) in trade payables | 742 | (469) | 563 | 131 | ||||
Increase (decrease) in employees and payroll accruals | 550 | (675) | 478 | (337) | ||||
Increase (decrease) in other payables | (534) | 48 | (67) | 634 | ||||
Decrease in deferred revenues and other advances | (288) | (153) | (478) | (338) | ||||
(400) | (771) | 590 | 369 | |||||
Cash received (paid) during the period for: | ||||||||
Interest received | 905 | 186 | 472 | 68 | ||||
Interest (paid) received, net | (115) | (165) | (23) | 191 | ||||
Taxes paid | (31) | (40) | (16) | (6) | ||||
Net cash used in operating activities | $ (21,577) | $ (23,678) | $ (5,925) | $ (2,257) | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Year ended December 31, | Three months ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
(Unaudited) | (Audited) | (Unaudited) | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | $ (785) | $ (1,171) | $ (86) | $ (199) | ||||
Proceeds from sale of marketable securities | 6,924 | 12,356 | - | 4 | ||||
Purchase of marketable securities | (503) | (911) | - | (252) | ||||
Proceeds from sale of property, plant and equipment | 26 | - | - | - | ||||
Withdrawal from (investment in) bank deposits, net | (10,200) | 3,000 | (500) | - | ||||
Net cash provided by (used in) investing activities | (4,538) | 13,274 | (586) | (447) | ||||
Cash flows from financing activities: | ||||||||
Issuance of a subsidiary preferred shares to non- | 9,523 | - | - | - | ||||
Proceeds from issuance of ordinary shares, net of | 8,449 | 21 | 45 | 21 | ||||
Proceeds from issuance of convertible SAFE | - | 10,000 | - | - | ||||
Proceeds from exercise of options | - | 7 | - | - | ||||
Repayment of lease liability | (836) | (803) | (212) | (437) | ||||
Proceeds from government grants | 1,089 | 149 | 20 | 60 | ||||
Repayment of government grants | (73) | (31) | - | - | ||||
Net cash provided by (used in) financing activities | 18,152 | 9,343 | (147) | (356) | ||||
Exchange rate differences - cash and cash equivalent | (245) | (2,284) | 99 | 180 | ||||
Decrease in cash and cash equivalents | (8,208) | (3,345) | (6,559) | (2,880) | ||||
Cash and cash equivalents beginning of the period | 28,980 | 32,325 | 27,331 | 31,860 | ||||
Cash and cash equivalents end of the period | $ 20,772 | $ 28,980 | $ 20,772 | $ 28,980 | ||||
Significant non-cash activities | ||||||||
Acquisition of property, plant and equipment | $ 81 | $ 74 | $ 81 | $ 74 | ||||
Increase of right-of-use-asset recognized with | $ 194 | $ 90 | $ 59 | $ 71 | ||||
Contact
Rachel Pomerantz Gerber
Head of Investor Relations at Evogene
rachel.pomerantz@evogene.com
Tel: +972-8-9311901
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SOURCE Evogene
FAQ
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