Evogene Reports First Quarter 2025 Financial Results
- ICL to acquire Lavie Bio's operations for $15.25 million and MicroBoost AI for Ag for $3.5 million
- Operating expenses reduced by 37.5% to $5.0 million
- Net loss decreased to $3.0 million from $3.8 million YoY
- Casterra's seed sales increased with 250 tons delivered, surpassing entire 2024 delivery
- Biomica's BMC128 showing early signs of monotherapy effectiveness
- Revenue declined 43% to $2.4 million from $4.2 million YoY
- Cash position decreased to $9.8 million from $15.3 million in December 2024
- Biomica requires additional funding for Phase II clinical study
- Significant reduction in R&D activities across subsidiaries
Insights
Evogene's Q1 shows revenue decline but strategic restructuring with ICL deal positioned to strengthen balance sheet amid narrowing losses.
Evogene's Q1 2025 results reveal a significant revenue decline to
The company has implemented a comprehensive expense reduction plan, already yielding results with total operating expenses dropping to
The most significant catalyst for Evogene's financial future is the pending
Notably, Casterra's performance shows promising commercial traction with seed deliveries already surpassing full-year 2024 volumes. This subsidiary appears to be transitioning from R&D to commercial phase, potentially providing more predictable revenue streams. Meanwhile, Evogene's strategic pivot to focus on its ChemPass-AI platform for pharmaceutical applications represents a higher-margin opportunity compared to agriculture.
The cash burn rate of approximately
Evogene's strategic pivot to ChemPass-AI in pharmaceuticals shows promising differentiation through Google Cloud partnership and massive molecular dataset access.
Evogene's Q1 report signals a decisive strategic pivot toward its ChemPass-AI technology platform, particularly for pharmaceutical applications. This represents a fascinating technology repositioning play that leverages their computational biology expertise into higher-value drug discovery markets.
The standout technological achievement is their collaboration with Google Cloud to develop a foundation model trained on an extraordinary 38 billion molecules. This represents one of the largest molecular training datasets in the industry, potentially giving Evogene a significant competitive edge in generating novel chemical entities. In drug discovery, where unique intellectual property is paramount, this capability addresses a critical industry pain point—designing compounds that meet complex multi-parameter requirements while maintaining structural novelty.
Their AI approach differs from many competitors by focusing specifically on lead optimization, a particularly challenging phase in drug development where many promising candidates fail due to unfavorable properties. By positioning ChemPass-AI at this critical bottleneck, Evogene has identified a high-value intervention point in the pharmaceutical R&D pipeline.
This strategic reorientation makes technological sense given the increasing challenges in agricultural innovation, where regulatory hurdles and commercialization timelines are lengthy. The pharmaceutical sector offers potentially faster paths to monetization through licensing deals and milestone payments.
The company appears to be transitioning from a diffuse technology organization with multiple subsidiaries to a more focused entity centered around their core computational strengths. This suggests leadership has recognized that their proprietary AI technology may be more valuable than the specific applications previously prioritized. This AI-first approach, particularly with the Google Cloud partnership, positions them to potentially capture higher margins than would be possible in the agricultural sector alone.
Conference call and webcast: today, May 21, 2025, 9:00 am ET
Financial Highlights:
- In the first quarter of 2025, total revenues were approximately
$2.4 million $4.2 million $3.5 million $2.5 million $1.0 million - During the fourth quarter of 2024 and the beginning of 2025, Evogene established an expense reduction plan which is expected to be completed by the second quarter of 2025. This reduction in expenses is already partially reflected in the financial results of the first quarter of 2025.
- In the first quarter of 2025, total R&D expenses were approximately
$3.2 million $4.8 million - In the first quarter of 2025, total Sales & Marketing expenses were approximately
$0.6 million $1.0 million - In the first quarter of 2025, total Operating expenses net were approximately
$5.0 million $8.0 million - Evogene announced on April 21, 2025 the acquisition of most of the activity of Lavie Bio by ICL, for
$15.25 million $3.5 million - As of the end of the first quarter of 2025, the company's cash and short-term bank deposits balance was approximately
$9.8 million $5.5 million $2.0 million
REHOVOT,
Mr. Ofer Haviv, Evogene's President and CEO, stated: "As part of our ongoing strategy to build a more capital-efficient and value-driven business model, Evogene is focusing on two key priorities: unlocking the full potential of our ChemPass-AI tech-engine in the pharmaceutical sector, and generating cash flow and strategic value from our subsidiaries. These efforts are designed to accelerate near-term monetization opportunities while reinforcing our long-term growth trajectory.
"We've made significant progress in advancing ChemPass-AI tech-engine, our proprietary AI platform for small molecule drug discovery. Over the past quarter, we sharpened its value proposition for the pharma and biotech industries, with a clear focus on addressing a core challenge—designing highly potent, novel compounds that meet complex multi-parameter requirements. An example of our unique ChemPass-AI offering is the foundation model developed in collaboration with Google Cloud, at the core of our lead-optimization activity. Trained on an unparalleled dataset of approximately 38 billion molecules, this model expands our ability to discover structurally unique and clinically relevant compounds, significantly improving the likelihood of success in preclinical and clinical stages. This positions ChemPass-AI as a differentiated and commercially attractive solution for pharma partners seeking next-generation discovery capabilities.
"In parallel, we are taking concrete steps to generate value from our subsidiaries. In April, we announced the acquisition of the majority of Lavie Bio's operations by ICL. This transaction is expected to generate value for Evogene in two ways: directly, through the sale of MicroBoost AI for Ag and indirectly, through dividends. We can also envision long-term upside for Evogene from certain existing collaboration agreements which remain in Lavie Bio and are not part of the transaction. We continue to explore similar strategic opportunities across our subsidiary portfolio, with the goal of unlocking shareholder value and supporting our broader mission through disciplined execution."
"We are confident that these strategic initiatives will drive sustainable growth and position Evogene for long-term success in the evolving life sciences landscape," Mr. Haviv concluded.
Subsidiaries Updates:
Lavie Bio Ltd. – a leading ag-biologicals company that develops microbiome-based, novel bio-stimulant and bio-pesticide products, utilizing Evogene's MicroBoost AI tech-engine.
- April 21, 2025 – announced the acquisition of most of the activity of Lavie Bio by ICL, for
$15.25 million $3.5 million - Acquisition completion is expected during Q2 2025, following completion of customary and regulatory closing conditions.
Casterra Ag Ltd. – focuses on developing integrated solutions for large-scale castor bean farming, utilizing GeneRator AI tech-engine.
- Delivery of approximately 250 tons of castor seeds to a partner in
Africa — surpassing the approximately 215 tons delivered in entire 2024. - Strengthening the sales team in
Brazil and initial execution of a new marketing and sales strategy. - Castor farming proof of concept trials for grain (not seed) to be sold to castor crushing factories, in
Kenya andBrazil , with local partners. Trials are underway in all locations, with initial results expected in Q3 2025.
AgPlenus Ltd. – specializes in developing novel and sustainable crop protection products, utilizing Evogene's ChemPass AI tech-engine.
- February 2025 - discovery of a new mode of action for fungicides against Septoria in wheat.
- Advancement in the discovery phase with the identification of promising candidate compounds targeting the new MoA.
Biomica Ltd. – a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics, utilizing Evogene's MicroBoost AI tech-engine.
- BMC128 - Phase I clinical study is progressing. New data shows early signs of monotherapy effectiveness, through immune activation within 14 days.
- Obesity and Longevity - initial computational analyses indicate that microbiome-based solutions can be effectively designed and developed. Early-stage discussions are taking place to evaluate potential partnerships.
- Additional funding is required for Phase II of the clinical study. An expense reduction plan has been established, to be completed by Q3 2025. Expense reduction is already reflected in Biomica's financial results of Q1 2025.
Financial Highlights:
Cash Position: As of March 31, 2025, Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately
Revenue: Revenues for the first quarter of 2025 were approximately
R&D Expenses: Research and development expenses for the first quarter of 2025 were approximately
Sales and Marketing Expenses: Sales and marketing expenses decreased to approximately
General and Administrative Expenses: General and administrative expenses decreased to approximately
Other Expenses (Income): Other income of approximately
Operating Loss: Operating loss for the first quarter of 2025 remained stable at approximately
Financing Income / Expenses: Net financing income for the first quarter of 2025 was approximately
Net Loss: The net loss for the first quarter of 2025 was approximately
For the financial tables click here.
Conference Call & Webcast Details: Wednesday, May 21, 2025, 9:00 AM EST 4:00 PM IDT
To join the Zoom conference, please register in advance here
Webcast & Presentation link available at:
https://evogene.com/investor-relations/
About Evogene Ltd.
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 four subsidiaries including:
- Biomica Ltd. (www.biomicamed.com) – developing and advancing novel microbiome-based therapeutics to treat human disorders powered by MicroBoost AI;
- Lavie Bio (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; and
- Casterra Ag (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", "demonstrates" or words of similar meaning. For example, Evogene and its subsidiaries are using forward-looking statements in this press release when they discuss the expected closing of the Lavie Bio – ICL transaction and the expected proceeds from such transaction and generation of value and long-term upside to Evogene, expected completion of Evogene's and Biomica's expense reduction plans and savings therefrom, ChemPass-AI being a differentiated and commercially attractive solution for pharma partners, Evogene's strategic initiatives, including achieving value from its subsidiaries, and their expected outcome to drive sustainable growth and position Evogene for long-term success in the evolving life sciences landscape, the timing of Casterra's trial results and Biomica's ability to raise funds which are required for Phase II of clinical study. 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 Relations Contact:
Email: ir@evogene.com
Tel: +972-8-9311901
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
March 31, | December 31, | |||
2025 | 2024 | |||
Unaudited | ||||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 7,495 | $ 15,301 | ||
Short-term bank deposits | 2,354 | 10 | ||
Trade receivables | 2,640 | 1,091 | ||
Other receivables and prepaid expenses | 651 | 2,064 | ||
Deferred expenses related to issuance of warrants | 1,209 | 1,304 | ||
Inventories | 2,152 | 1,819 | ||
16,501 | 21,589 | |||
LONG-TERM ASSETS: | ||||
Long-term deposits and other receivables | 162 | 12 | ||
Investment in an associate | 80 | 82 | ||
Deferred expenses related to issuance of warrants | 1,505 | 1,735 | ||
Right-of-use-assets | 2,480 | 2,447 | ||
Property, plant and equipment, net | 1,621 | 1,804 | ||
Intangible assets, net | 11,955 | 12,195 | ||
17,803 | 18,275 | |||
TOTAL ASSETS | $ 34,304 | $ 39,864 | ||
LIABILITIES AND EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ 1,228 | |||
Employees and payroll accruals | 1,622 | 1,869 | ||
Lease liabilities | 670 | 589 | ||
Liabilities in respect of government grants | 353 | 323 | ||
Deferred revenues and other advances | 209 | 360 | ||
Warrants and pre-funded warrants liability | 1,169 | 2,876 | ||
Convertible SAFE | 10,371 | 10,371 | ||
Other payables | 613 | 1,079 | ||
15,599 | 18,695 | |||
LONG-TERM LIABILITIES: | ||||
Lease liabilities | 1,922 | 1,914 | ||
Liabilities in respect of government grants | 4,302 | 4,327 | ||
Deferred revenues and other advances | 86 | 90 | ||
6,310 | 6,331 | |||
TOTAL LIABILITIES | $ 21,909 | $ 25,026 |
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares of Authorized − 15,000,000 ordinary shares; Issued and | 372 | 363 | ||
Share premium and other capital reserves | 272,641 | 272,257 | ||
Accumulated deficit | (276,658) | (274,071) | ||
Equity attributable to equity holders of the Company | (3,645) | (1,451) | ||
Non-controlling interests | 16,040 | 16,289 | ||
TOTAL EQUITY | 12,395 | 14,838 | ||
TOTAL LIABILITIES AND EQUITY | $ 34,304 | $ 39,864 |
CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS
Three months ended March 31, | Year ended December 31, | |||||
2025 | 2024 | 2024 | ||||
Unaudited | ||||||
Revenues | $ 2,444 | $ 4,190 | $ 8,511 | |||
Cost of revenues | 1,614 | 310 | 2,683 | |||
Gross profit | 830 | 3,880 | 5,828 | |||
Operating expenses (income): | ||||||
Research and development, net | 3,208 | 4,801 | 16,648 | |||
Sales and marketing | 645 | 992 | 3,425 | |||
General and administrative | 1,294 | 1,654 | 7,441 | |||
Other expenses (income) | (191) | 519 | 524 | |||
Total operating expenses, net | 4,956 | 7,966 | 28,038 | |||
Operating loss | (4,126) | (4,086) | (22,210) | |||
Financing income | 1,603 | 407 | 7,546 | |||
Financing expenses | (464) | (166) | (3,342) | |||
Financing income, net | 1,139 | 241 | 4,204 | |||
Share of loss of an associate | 2 | - | 39 | |||
Loss before taxes on income | (2,989) | (3,845) | (18,045) | |||
Taxes on income | - | - | 9 | |||
Loss | $ (2,989) | $ (3,845) | $ (18,054) | |||
Attributable to: | ||||||
Equity holders of the Company | (2,587) | (3,863) | (16,485) | |||
Non-controlling interests | (402) | 18 | (1,569) | |||
$ (2,989) | $ (3,845) | $ (18,054) | ||||
Basic and diluted loss per share, attributable to | $ (0.38) | $ (0.76) | $ (2.89) | |||
Weighted average number of shares used in | 6,798,173 | 5,083,116 | 5,697,245 | |||
(*) Shares and per share amounts have been retroactively adjusted to reflect the 1:10 reserve stock split | ||||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
Three months ended March 31, | Year ended December 31, | ||||||
2025 | 2024 | 2024 | |||||
Unaudited | |||||||
Cash flows from operating activities: | |||||||
Loss | $ (2,989) | $ (3,845) | $ (18,054) | ||||
Adjustments to reconcile loss to net cash used in operating | |||||||
Adjustments to the profit or loss items: | |||||||
Depreciation and amortization of property, plant and | 339 | 426 | 1,530 | ||||
Amortization of intangible assets | 240 | 245 | 974 | ||||
Share-based compensation | 316 | 539 | 1,795 | ||||
Remeasurement of Convertible SAFE | - | (25) | 3 | ||||
Net financing income | 1 | (194) | (689) | ||||
Loss from sale of property, plant and equipment | - | 519 | 524 | ||||
Gain from deduction of right-of-use asset and subsequent | (191) | - | - | ||||
Excess of initial fair value of pre-funded warrants over | - | - | 2,684 | ||||
Amortization of deferred expenses related to issuance of | 326 | - | 471 | ||||
Remeasurement of pre-funded warrants and warrants | (1,477) | - | (6,529) | ||||
Share of loss of an associate | 2 | - | 39 | ||||
Taxes on income | - | - | 9 | ||||
(444) | 1,510 | 811 | |||||
Changes in asset and liability items: | |||||||
Increase in trade receivables | (1,549) | (182) | (734) | ||||
Decrease (increase) in other receivables and prepaid | 1,467 | (179) | 925 | ||||
Increase in inventories | (333) | (640) | (1,743) | ||||
Decrease in trade payables | (515) | (685) | (596) | ||||
Decrease in employees and payroll accruals | (247) | (105) | (668) | ||||
Increase (decrease) in other payables | (466) | (61) | 62 | ||||
Decrease in deferred revenues and other advances | (155) | (71) | (559) | ||||
(1,798) | (1,923) | (3,313) | |||||
Cash received (paid) during the year for: | |||||||
Interest received | 95 | 171 | 934 | ||||
Interest paid | (46) | (23) | (67) | ||||
Taxes paid | - | - | (11) | ||||
Net cash used in operating activities | $ (5,182) | $ (4,110) | $ (19,700) | ||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
Three months ended March 31, | Year ended December 31, | |||||||
2025 | 2024 | 2024 | ||||||
Unaudited | ||||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | $ (122) | $ (141) | $ (626) | |||||
Proceeds from sale of property, plant and equipment | - | 10 | 58 | |||||
Proceeds from finance sub -lease asset | 2 | - | - | |||||
Proceeds from short-term bank deposits | - | 1,210 | 27,340 | |||||
Investment in short-term bank deposits | (2,326) | (5,441) | (17,150) | |||||
Net cash provided by (used in) investing activities | (2,446) | (4,362) | 9,622 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of ordinary shares, pre-funded | - | - | 5,500 | |||||
Proceeds from issuance of ordinary shares, net of issuance | - | 3 | 123 | |||||
Repayment of lease liabilities | (143) | (231) | (901) | |||||
Proceeds from government grants | 106 | - | 232 | |||||
Repayment of government grants | (122) | (139) | (298) | |||||
Net cash provided by (used in) financing activities | (159) | (367) | 4,656 | |||||
Exchange rate differences on balances of cash and cash | (19) | (18) | (49) | |||
Decrease in cash and cash equivalents | (7,806) | (8,857) | (5,471) | |||
Cash and cash equivalents at the beginning of the period | 15,301 | 20,772 | 20,772 | |||
Cash and cash equivalents at the end of the period | $ 7,495 | $ 11,915 | $ 15,301 | |||
Significant non-cash activities | ||||||
Purchase of property, plant and equipment | $ - | $ 22 | $ 120 | |||
Right-of-use asset recognized with corresponding lease | $ 207 | $ 130 | $ 2,307 | |||
Exercise of pre-funded warrants | $ 229 | $ - | $ 2,289 | |||
Derecognition of property, plant and equipment under a | $ 13 | $ - | $ - | |||
Investment in affiliated company with corresponding deferred | $ - | $ 120 | $ 120 |
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SOURCE Evogene
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