Evogene Reports Fourth Quarter and Full Year 2023 Financial Results
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, Israel, March 7, 2024 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), a leading computational biology company targeting to revolutionize life-science-based product discovery and development utilizing cutting edge computational biology technologies, across multiple market segments, today announced its financial results for the fourth quarter and full-year period ending December 31, 2023.
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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 $5.6 million in 2023, compared to approximately $1.7 million 2022. We anticipate continued revenue growth for the Evogene Group in 2024."
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 EUR1.2 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 from a world-leading oil and gas company
for castor cultivation in 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 and Zambia to Africa, 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 and Africa 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 financing
round in April 2023, with a $10 million investment from Shanghai
Healthcare Capital, validating Biomica's long-term potential.
-- 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 to Lavie Bio, with potential future milestone payments and
royalties from Corteva's sales of the products.
-- 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(TM) 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 U.S. and Canada, following successful field trials demonstrating approximately 7% yield increase.
- 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.
Alongside Casterra, Canonic, and AgPlenus, Evogene had an aggregate cash
reserve of $12.4 million, with Biomica holding $12.7 million and Lavie
Bio $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 million.
-- In 2024, Evogene anticipates a significant decrease in cash usage to
approximately $8 million, excluding Lavie Bio and Biomica, compared to
$12.5 million in 2023. This reduction is primarily driven by an expected
revenue increase and decrease in Canonic's expenses. The total
consolidated burn rate is projected to decline as well to $21 million in
2024, down from $23.1 million in 2023.
-- The company does not have any bank debt.
-- Revenues for 2023 were approximately $5.6 million, in comparison to
approximately $1.7 million in 2022. The revenue increase was primarily
due to the $2.5 million generated by Lavie Bio as a licensing fee in the
frame of its collaboration with Corteva, as well as revenues recognized
from Casterra's sale of castor seeds.
-- In the fourth quarter of 2023 R&D expenses, reported net of
non-refundable grants, reached approximately $5.5 million, compared to
about $4.8 million in the same period the previous year. For the full
year 2023, R&D expenses remained steady at approximately $20.8 million,
in line with 2022 figures. Key drivers of R&D expenditure throughout
2023 included the activities of Lavie Bio and the development efforts of
Biomica.
-- In the fourth quarter of 2023, sales and marketing expenses totaled
approximately $1.0 million, showing a slight decrease from approximately
$1.2 million in the same period the previous year. Throughout the full
year 2023, sales and marketing expenditures amounted to approximately
$3.6 million, compared to approximately $3.9 million in 2022.
-- In the fourth quarter of 2023, general and administrative expenses were
approximately $1.2 million, down from about $1.7 million in the same
period the previous year. For the full year 2023, these expenses totaled
around $6.1 million, compared to approximately $6.5 million in 2022,
mainly due to decreased directors' and officers' insurance costs.
-- Other income - In the fourth quarter of 2022, the company received $3.5
million from Bayer under the joint seed traits collaboration agreement,
as part of a restructuring and release of the patent filing,
prosecution, and maintenance obligations under the collaboration.
-- In the fourth quarter of 2023, the company's operating loss increased to
approximately $7.6 million from $3.8 million in the same period the
previous year, mainly due to the absence of other income recorded in
2022. For the full year 2023, the operating loss was approximately $26.5
million, slightly lower than the $26.9 million reported in 2022 mainly
due to the significant increase of revenues in 2023 offset by the other
income recorded in 2022.
-- In the fourth quarter of 2023, the company's net financing income
amounted to approximately $287 thousand, a significant increase from
approximately $6 thousand in the same period the previous year. For the
full year 2023, net financing income totaled approximately $521
thousand, compared to net financing expenses of approximately $2.8
million in the same period in the previous year. This difference between
periods was primarily driven by fluctuations in the 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, compared to a net loss of approximately $3.8
million in the same period the previous year. This increase in net loss
during the fourth quarter of 2023 is primarily attributed to other
income received in 2022, as mentioned above. For the full year 2023, the
net loss amounted to approximately $26.0 million, a decrease from the
net loss of approximately $29.8 million reported for 2022.
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 Israel time
To join the conference call, please use the following numbers: +1-888-407-2553 toll-free from the United States or +972-3- 9180608 internationally. Or at https://veidan.activetrail.biz/evogeneq4-2023
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 the United States or +972-3-925-5901 internationally. The telephone replay will be accessible for three days, but an archive of the webcast will be available from the webcast link for the following twelve months.
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:
1. Biomica Ltd. (www.biomicamed.com) developing and advancing novel
microbiome-based therapeutics to treat human disorders powered by
MicroBoost AI;
2. Lavie Bio Ltd. (www.lavie-bio.com) - developing and commercially
advancing, microbiome based ag-biologicals powered by MicroBoost AI;
3. AgPlenus Ltd. (www.agplenus.com) -developing next generation ag chemicals
for effective and sustainable crop protection powered by ChemPass AI;
4. Canonic Ltd. (www.canonicbio.com) - developing medical cannabis products
based on decoding plant genetics for optimized therapeutic effect powered
by GeneRator AI; and
5. 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 Yalos(TM), 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 Israel and Hamas and any worsening of the situation in Israel such as further mobilizations or escalation in the northern border of Israel and those risk factors contained in Evogene's reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
U.S. dollars in thousands
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
O
ther advances 393
Convertible SAFE 10,368 10,114
15,472 15,711
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.02 par value: 286 235
Authorized - 150,000,000 ordinary shares; Issued and
outstanding -50,584,888 shares on December 31, 2023 and
41,260,439 shares on December 31, 2022
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
U.S. dollars in thousands (except share and per share amounts)
Year ended Three months ended
December 31, 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)
attributable to equity holders of the
Company
Weighted average number of shares 45,685,619 41,210,184 50,584,888 41,234,438
used in computing basic and diluted
loss per share
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three months ended
Year ended December 31,
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
operating activities:
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
(
t
ax 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
U.S. dollars in thousands
Three months ended
Year ended December 31,
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
controlling interests
Proceeds from issuance of ordinary shares, net of 8,449 21 45 21
issuance expenses
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
balances
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
corresponding lease liability
Contact
Rachel Pomerantz Gerber
Head of Investor Relations at Evogene
rachel.pomerantz@evogene.com
Tel: +972-8-9311901
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