Lavie Bio Successfully Secures Second Half Advance Payment of $2.5M after Meeting Corteva's Licensing Agreement Requirements
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Insights
The receipt of the final advance payment from Corteva to Lavie Bio indicates a positive cash flow event for Lavie Bio and reflects a milestone achievement under the terms of their licensing agreement. This inflow of capital can bolster Lavie Bio's liquidity and potentially fund further research and development efforts. Additionally, the structure of the deal, which includes future milestone payments and royalties, suggests a variable revenue stream contingent on the successful development and commercialization of the bio-fungicide products.
For investors, this news could signal a strengthened partnership and confidence in Lavie Bio's technology and product pipeline. The financial health and prospects of Lavie Bio, as a subsidiary of Evogene, may thus have a direct impact on Evogene's valuation and investor sentiment. The licensing agreement with a major player like Corteva could also serve as a validation of Lavie Bio's technology, possibly affecting the stock performance of both entities in the short to medium term.
The ag-biologicals market is gaining traction as sustainable agriculture practices are increasingly adopted globally. Lavie Bio's development of bio-stimulant and bio-pesticide products aligns with the industry's shift towards eco-friendly solutions. The successful advancement of bio-fungicide candidates targeting fruit rots and powdery mildew addresses specific crop protection challenges faced by farmers, which could lead to significant demand for these products upon successful commercialization.
Understanding the competitive landscape, Corteva's exclusive rights to these bio-fungicide product candidates could position it favorably in the market, potentially disrupting traditional chemical fungicide sales. For stakeholders, this deal could represent an opportunity to capitalize on emerging trends in the agricultural sector, leveraging the growing consumer and regulatory push for sustainable farming inputs.
Lavie Bio's use of a microbiome-based, computational-driven BDD technology platform, complemented by Evogene's MicroBoost AI tech-engine, represents a cutting-edge approach in the field of agricultural biotechnology. The development of bio-fungicides is a complex process that involves identifying beneficial microbial strains and formulating them into effective and stable products that can be used in agricultural settings.
The partnership with Corteva, a well-established agricultural company, could enhance the scalability and distribution of these innovative products. The successful development and commercialization of these bio-fungicides not only have implications for reducing chemical pesticide usage but also for improving crop yields and resilience, which is vital for food security and environmental sustainability.
The payment completes the
REHOVOT,
The agreement signed in July 2023 grants Corteva exclusive rights to further develop and commercialize the leading bio-fungicide product candidates targeting fruit rots and powdery mildew. These candidates were initially identified and developed through Lavie Bio's BDD technology platform, powered by Evogene's MicroBoost AI tech-engine.
Lavie Bio will also be eligible for additional future milestone payments and royalties from Corteva's expected future sales of these products.
"We're pleased to achieve this milestone in our collaboration with Corteva," said Amit Noam, CEO of Lavie Bio. "The agreement not only showcases Lavie Bio's technological capabilities but also enables us to swiftly introduce groundbreaking ag-biological solutions, that will benefit farmers, consumers, and the environment."
About Lavie Bio Ltd.
Lavie Bio, a subsidiary of Evogene Ltd., aims to improve food quality, sustainability, and agriculture productivity by introducing microbiome-based ag-biological products. Lavie Bio utilizes a proprietary computational predictive platform, the BDD platform, powered by Evogene's proprietary MicroBoost AI tech-engine, harnessing the power of big data, artificial intelligence, and advanced informatics for the discovery, optimization and development of bio-stimulant and bio-pesticide products.
For more information, please visit www.lavie-bio.com.
About Evogene Ltd.
Evogene (Nasdaq: EVGN) (TASE: EVGN) is a computational biology company 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 – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. 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 subsidiaries and strategic partnerships. Evogene's subsidiaries currently utilize the tech-engines to develop human microbiome-based therapeutics by Biomica, ag-biologicals by Lavie Bio, ag-chemicals by AgPlenus, medical cannabis products by Canonic and castor varieties, for the biofuel and other industries, by Casterra.
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", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statement in this press release when they discuss the development and commercialization of a leading bio-fungicide product candidates targeting fruit rots and powdery mildew, receipt of royalties and milestone payments. 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
Evogene Investors' Contact:
Rachel Pomerantz Gerber, Head of Investor Relations at Evogene
Email: rachel.pomerantz@evogene.com
Tel: +972-8-9311901
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SOURCE Lavie Bio
FAQ
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