Pluri CEO Issues Shareholder Letter Highlighting Strategic Growth, Innovation, and Global Market Expansion

Rhea-AI Summary

Pluri Inc. (PLUR) reported significant growth and strategic developments in its fiscal year 2025. The company achieved nearly 400% revenue growth in the first nine months, reaching $938,000 compared to $230,000 in the same period last year, driven by CDMO and AgTech businesses. Pluri is expanding into the cultivated cacao and coffee markets to address supply chain challenges caused by climate change and rising demand. The company maintains a 69% stake in Ever After Foods, which secured a $10 million funding round led by strategic partners. While NIH and DoD funding for PLX-R18 development was discontinued, Pluri partnered with Hemafund for nuclear emergency response plans. The company is actively pursuing partnerships in the cocoa and coffee industries, focusing on commercial implementation and potential technology licensing opportunities.

Positive

• Revenue grew nearly 400% to $938,000 in first nine months of FY2025
• Strategic expansion into cultivated cacao and coffee markets addressing global supply chain issues
• 69% ownership stake in Ever After Foods, which secured $10M in funding
• New investment secured from strategic partner with healthcare expertise
• Commercial-scale production capabilities independent of weather and location

Negative

• Discontinuation of NIH and DoD funding for PLX-R18 development due to federal budget cuts
• Still operating at relatively low revenue levels despite growth ($938,000 in nine months)

Insights

Financial Analyst

Pluri shows strong 400% revenue growth to $938K, but remains early-stage with promising diversification into food tech and agriculture markets.

This shareholder letter reveals $938,000 in revenue for the first nine months of fiscal 2025, representing an impressive 400% increase from the $230,000 recorded in the comparable period of fiscal 2024. This growth stems primarily from two emerging business segments: their Contract Development and Manufacturing Organization (CDMO) services and AgTech collaborations, including a proof-of-concept partnership with a major agriculture corporation.

While this revenue growth is substantial percentage-wise, the absolute numbers remain modest for a publicly-traded biotech company. Pluri is still in its early commercialization phase, with revenues that don't yet cover operational expenses. The company hasn't provided specific guidance on profitability timeline, indicating they're still in investment mode.

The letter reveals a strategic shift worth noting: Pluri is increasingly focusing on food technology applications, particularly cultivated cacao and coffee. These markets represent significant opportunities given global supply challenges from climate change, disease, and farming sustainability issues. The company holds a 69% stake in Ever After Foods, their cultivated meat venture that secured $7.5 million from Tnuva initially and an additional $10 million from strategic partners in June 2024.

On the medical front, Pluri received $2.2 million in U.S. government funding for radiation treatment research, but this support has been discontinued due to federal budget cuts. The company is now seeking alternative funding partners, creating some uncertainty in this division.

The strategic direction appears to prioritize food tech applications over medical treatments, likely due to shorter paths to commercialization and significant market opportunities. Their platform technology approach, enabling cell expansion across multiple industries, creates a diversified revenue model that could be beneficial for managing risk, though it may dilute focus in the near term.

Food Technology Expert

Pluri's expansion into cultivated cacao and coffee addresses critical supply chain vulnerabilities with potentially disruptive cell-based production technology.

Pluri's strategic pivot toward cultivated cacao and coffee represents a significant technological opportunity in the food tech sector. These industries face severe supply challenges - cacao production is threatened by climate change, diseases like swollen shoot virus, and unsustainable farming practices, while coffee faces similar existential threats from rising temperatures and volatile weather patterns affecting traditional growing regions.

The company's cell expansion platform offers a compelling solution by enabling location-independent production in controlled environments. This approach could fundamentally transform agricultural supply chains by decoupling production from specific geographies and climate conditions - a revolutionary change for tropical crops like cacao and coffee that have strict growing requirements.

Their partnership with an Israeli AgFoodTech company developing cell-based cacao technology suggests Pluri is building ecosystem capabilities rather than developing everything internally. This is a pragmatic approach in the complex food tech space. Their claim about maintaining taste, functionality, and nutritional profiles without genetic engineering addresses key consumer adoption barriers in cultivated foods.

The company's 69% stake in Ever After Foods provides additional validation of their platform's applicability across multiple food verticals. The $10 million investment from food and FoodTech strategic partners in June 2024 suggests industry recognition of the technology's potential.

From a technical perspective, Pluri's emphasis on commercial-scale production capabilities is crucial. Many cell-cultivation technologies demonstrate proof-of-concept but struggle with economically viable scaling. Their focus on compact, sustainable facilities positions them to potentially overcome the production cost barriers that have historically limited cultivated food technologies.

The mention of discussions with leading players in coffee and cocoa industries suggests potential B2B commercialization strategies through licensing or partnership models rather than direct-to-consumer approaches, which could accelerate market entry by leveraging established distribution channels.

• Major milestones include entry into cultivated cacao and coffee markets and progress toward commercial-scale production
• Company reports nearly 400% revenue growth in the first nine months of fiscal year 2025 compared to the same period in fiscal year 2024, driven by its CDMO and AgTech businesses, and is advancing new food tech partnerships and licensing opportunities

HAIFA, Israel, May 15, 2025 (GLOBE NEWSWIRE) -- Pluri Inc. (Nasdaq, TASE: PLUR) (“Pluri” or the “Company”), a leading biotechnology company leveraging its proprietary platform for cell-based solutions to create a collaborative network of ventures, today issued the following shareholder update from Chief Executive Officer and President, Yaky Yanay:

Dear Shareholders,

As we conclude our fiscal year, which was marked by challenges and accomplishments, I’m pleased to share key developments and to outline our path forward. Pluri is aiming to lead a global biotech revolution in the fields of healthcare, food, and agriculture by leveraging our innovative cell expansion platform. This platform enables us to grow cells from diverse sources and transform them into pharmaceuticals, food products, and agricultural goods to address many multi-billion dollar markets.

We anticipate that the coming fiscal year will mark a significant turning point, as we unlock the potential of our cell expansion technology to deliver scalable global solutions — particularly in the cocoa and coffee industries, where climate change, plant diseases, and rising demand are steadily increasing shortages. The technological and managerial expertise we’ve accumulated, combined with the economic potential in these sectors, positions Pluri with a strategic edge. We believe that one of our key strengths lies in our ability to produce cells at a commercial scale — independent of weather and location — within compact, sustainable facilities. We believe that our capability to assemble cells into finished products — such as cultivated meat, coffee and cocoa — will enable us to meet global demand while maintaining consistent quality and competitive pricing. Notably, our products closely resemble their natural counterparts and involve no genetic engineering whatsoever.

As part of our growth strategy, we have taken steps to strengthen our position in the cultivated cacao space by aligning with an Israeli AgFoodTech company that is developing innovative cell-based cacao technology. Led by a talented team of entrepreneurs and scientists, the company has made promising progress in producing cacao directly from cells, while maintaining the taste, functionality, and nutritional integrity of the original product. The global cacao industry is facing increasing pressure due to climate change, disease, and unsustainable farming practices, making it critical to develop reliable and environmentally responsible alternatives. This initiative supports our broader vision of expanding into high-impact sectors and advancing sustainable, vertically integrated solutions in the cultivated food industry.

We are also fortunate to have the backing of strategic investors who share our long-term vision and recognize the global potential of our technology. Recently, we secured additional investment from a new partner with deep expertise in healthcare and a strong track record in emerging markets. This support does not only reinforce our financial position but also enhances our ability to expand into key geographies where our solutions can have meaningful impact.

In addition, we hold a 69% stake in Ever After Foods Ltd., a private company leveraging Pluri’s cell expansion technology for cultivated meat production. Ever After Foods was founded by Pluri in partnership with Tnuva, which initially invested $7.5 million. In June 2024, two major international strategic partners — one from the food sector and the other from FoodTech — led a $10 million funding round in Ever After Foods.

On the medical research front, we received a total of $2.2 million in funding to date from the U.S. National Institutes of Health and the Department of Defense to develop PLX-R18 for the treatment of Acute Radiation Syndrome (ARS). This funding was reflected as a reduction in research and development expenses. Due to federal budget cuts, such funding has been discontinued, and we are currently working to secure alternative support from several partners. In parallel, we signed a collaboration with Hemafund Ltd. to develop nuclear emergency response plans in Ukraine and Europe, drawing on our accumulated experience.

Financially, in the first nine months of our fiscal year 2025, we recorded a fourfold increase in revenue — from $230,000 in the same period in fiscal year 2024, to $938,000. This growth is primarily attributed to the launch of new business verticals, specifically in the Contract Development and Manufacturing Organization field and an increase related to a proof-of-concept collaboration with a leading international agriculture corporation in the agtech field. While mindful of market dynamics, we remain encouraged by current trends and expect revenue growth to continue as our commercial efforts gain traction.

As we move forward, we are actively positioning the Company for sustained growth, increased revenue streams, and the expansion of our operations. We are currently in discussion with leading players in the cocoa and coffee industries and are exploring opportunities for commercial implementation of our technology — including potential out-licensing to strategic partners.

In conclusion, we believe that Pluri today operates one of the world’s most innovative and diverse cell expansion platforms, with a wide range of activity in critical sectors. We operate in vast markets characterized by instability and supply chain challenges, and we believe we are uniquely positioned to address these issues. As we approach the end of fiscal year 2025 and the beginning of fiscal year 2026, Pluri moves forward with a solid foundation, strategic partnerships, technological resilience, and a genuine belief in our ability to lead meaningful change in the food and healthcare sectors.

I want to express my gratitude to you — our shareholders, in Israel and around the world — for your continued trust, support, and belief in our shared vision.

Best regards,

Yaky Yanay

Chief Executive Officer and President, Pluri Inc.

About Pluri Inc.

Pluri™ is pushing the boundaries of science and engineering to create cell-based products for commercial use and is pioneering a biotech revolution that promotes global well-being and sustainability. The Company’s technology platform, a patented and validated state-of-the-art 3D cell expansion system, enables the development of novel cell-based solutions to address some of the world’s most pressing challenges—from medicine and climate change to food scarcity and animal welfare. Pluri’s platform is uniquely accurate, scalable, cost-effective, and consistent from batch to batch. The Company operates in the regenerative medicine, foodtech, and agtech sectors and provides Contract Development and Manufacturing Organization services. Through strategic partnerships, Pluri aims to deploy its proprietary 3D cell-based technology across various industries that demand effective and scalable cell production. To learn more, visit www.pluri-biotech.com or follow Pluri on LinkedIn and X (formerly known as Twitter).

Safe Harbor Statement

This press release contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. For example, Pluri is using forward-looking statements when it discusses its ability to lead a global biotech revolution in healthcare, food and agriculture; its ability to transform cells into pharmaceuticals, food products, and agricultural goods; its expectation that the coming year will mark a significant turning point as it unlocks the potential of their cell expansion technology to deliver scalable global solutions; its positioning with a strategic edge; its ability to produce cells at a commercial scale; its ability to assemble cells into finished products and to meet global demand while maintaining consistent quality and competitive pricing; its ability to expand into key geographies; its ability to secure alternative support from partners following the federal budget cut; its ability to develop nuclear emergency response plans in Ukraine and Europe in collaboration with Hemafund; and its expectation that revenue will continue to grow and its operations will expand.

These forward-looking statements and their implications are based on the current expectations of Pluri’s management only and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially: the expected benefits from the completed transactions may not be realized as anticipated; Pluri may encounter delays or obstacles in integrating the Israeli AgFoodTech company’s operations; changes in technology or market conditions; Pluri may face challenges in launching or scaling new products; regulatory developments could impact commercialization efforts; its technology may not be validated as it progresses further and its methods may not be accepted by the scientific community; unforeseen scientific or operational challenges; and intensified competition in the cultivated food space.

Except as otherwise required by law, Pluri undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting Pluri, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission.

Contacts

Investors: investor.relations@pluri-biotech.com
Israel Media: Shachar Yental at shacharye@gitam.co.il
U.S. Media: Berry Brady at berry@quantum-corp.com

FAQ

What was Pluri's (PLUR) revenue growth in the first nine months of fiscal year 2025?

Pluri reported a nearly 400% revenue growth, reaching $938,000 compared to $230,000 in the same period of fiscal year 2024.

What new markets is Pluri (PLUR) expanding into in 2025?

Pluri is expanding into the cultivated cacao and coffee markets to address supply chain challenges caused by climate change, plant diseases, and rising demand.

How much funding did Ever After Foods, Pluri's subsidiary, secure in June 2024?

Ever After Foods secured a $10 million funding round led by two major international strategic partners from the food and FoodTech sectors.

What happened to Pluri's PLX-R18 development funding from NIH and DoD?

The $2.2 million funding from NIH and DoD for PLX-R18 development was discontinued due to federal budget cuts, and Pluri is seeking alternative support.

What is Pluri's ownership stake in Ever After Foods?

Pluri holds a 69% stake in Ever After Foods, which was founded in partnership with Tnuva.