Business
Evogene Reports Fourth Quarter and Full Year 2024 Financial Results
Evogene Ltd. (NASDAQ: EVGN) (TASE: EVGN), a leading computational biology company aiming to revolutionize the development of life-science-based products, today announced its financial results for the fourth quarter and full year period ended December 31, 2024.
About this update from Evogene Ltd.
Conference call and webcast: today, March 6, 2025, 9:00 am ET Financial Highlights: REHOVOT, Israel , March 6, 2025 /PRNewswire/ -- Evogene Ltd . (NASDAQ: EVGN) (TASE: EVGN), a leading computational biology company aiming to revolutionize the development of life-science-based products, today announced its financial results for the fourth quarter and full year period ended December 31, 2024 . Mr. Ofer Haviv , Evogene's President and CEO , stated: "Today Evogene announced a change in the Chair position of its Board. I am pleased to welcome Mr. Nir Nimrodi as the new Chairperson of the Board and would like to express my gratitude to Ms. Sarit Firon for her invaluable contributions as Chairperson, I am pleased that she will continue to support Evogene in her role as a board member." "2024 was a year of topline growth, reduction in cash use and value creation. We expect this trend to continue. I would like to share with you Evogene's prospects for the near future," Mr. Haviv continued. "Evogene intends to direct its efforts by focusing further on the use of our ChemPass AI tech-engine in the field of AI powered drug discovery. We plan to enhance ChemPass AI tech-engine's competitive advantage for the pharma market segment and expect these efforts to manifest in collaborations for small-molecule drug discovery, with bio-tech companies and academic institutions . I hope we'll be able to announce such collaborations later this year. With respect to MicroBoost AI and GeneRator AI we intend to continue the support and development of these tech-engines based on the needs of our subsidiaries, with their funding." "With regard to Evogene's subsidiaries our intention is to focus on creating exit events for part of our subsidiaries. An exit event is expected to inject funds to further support Evogene's activities. In addition, we plan to strengthen Casterra's position as a profitable world leader in the castor oil market. Since Evogene holds 100% of Casterra we intend to use its profits to support Evogene's activities, as well. Last, Evogene will also support subsidiaries' efforts in their strategic fundraising activities. Part of the funds will be used by the subsidiaries to finance the development of Evogene's tech-engines according to their needs." "These strategic guidelines are expected to strengthen Evogene's financial position. Through focus on a single engine and implementation of our expense reduction plan, we expect to substantially lower expenses, and through exit events, dividends, and technology license payments, we anticipate enhancing Evogene's financials," Mr. Haviv concluded. Subsidiaries' 2025 Targets: Casterra Ag Ltd. – focuses on developing integrated solutions for large-scale castor bean farming, utilizing GeneRator AI tech-engine. 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. AgPlenus Ltd. – specializes in developing novel and sustainable crop protection products, utilizing Evogene's ChemPass AI tech-engine. Biomica Ltd. – a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics, utilizing Evogene's MicroBoost AI tech-engine. Financial Highlights: Cash Position : As of December 31, 2024 , Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $15.3 million . The consolidated cash usage during the fourth quarter of 2024 was approximately $4.6 million . Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $1.5 million in cash during the fourth quarter of 2024. Cash usage for 2024, excluding Lavie Bio and Biomica, was approximately $10.4 million , marking a notable 17% decrease from approximately $12.5 million in 2023. Revenue : Revenues for the 12 months of 2024 were approximately $8.5 million , an increase from approximately $5.6 million in the same period the previous year. This growth was primarily driven by revenues recognized from AgPlenus's new collaboration with Bayer and increased Casterra's revenues from the supply of castor seeds during the period. Revenues for the fourth quarter of 2024 were approximately $1.6 million , compared to approximately $0.6 million in the same period the previous year. The increase was mainly attributable to the increase in Casterra's seed sales and the collaboration with Bayer, as mentioned above. R&D Expenses : Research and development expenses, net of non-refundable grants, for the 12 months of 2024 were approximately $16.6 million , a significant decrease from approximately $20.8 million in the 12 months of 2023. The decrease in expenses is mainly due to the cease of Canonic's activities and a decrease in certain development expenses in Biomica, Evogene and Lavie Bio as compared to the same period the previous year. Research and development expenses, net of non-refundable grants, for the fourth quarter of 2024 were approximately $3.4 million , and decreased as compared to approximately $5.5 million in the same period in the previous year. The decrease is mainly attributable to decreased expenses in Lavie Bio , Biomica, Evogene and the cease of Canonic's operations as mentioned above. Sales and Marketing Expenses : Sales and Marketing expenses for the 12 months of 2024 were approximately $3.4 million , a slight decrease from approximately $3.6 million in the same period in the previous year. Sales and Marketing expenses for the fourth quarter of 2024 were approximately $0.7 million , a slight decrease from approximately $1.0 million in the same period in the previous year. The decrease is mainly due to the cease of Canonic's activities. General and Administrative Expenses : General and administrative expenses for the 12 months of 2024 increased to approximately $7.4 million from approximately $6.1 million in the same period of the previous year. The increase is mainly attributable to expenses recorded in Casterra due to a provision on a doubtful debt of a seed supplier and transaction costs related to Evogene's fundraising that occurred in August 2024 , totaling approximately $1.5 million . General and administrative expenses for the fourth quarter of 2024 increased slightly to approximately $1.4 million compared to approximately $1.2 million in the same period of the previous year. Other Expenses : The decision to cease Canonic's operations in the first half of 2024 resulted in other expenses of approximately $0.5 million , mainly due to impairment of fixed assets in the first quarter of 2024. Operating Loss : The operating loss for the 12 months of 2024 was approximately $22.2 million , a decrease from approximately $26.5 million in the same period of the previous year, mainly due to increased revenues and decreased research and development expenses, offset by increased general and administrative expenses and other expenses, as mentioned above. The operating loss for the fourth quarter of 2024 was approximately $4.6 million , a decrease from approximately $7.6 million in the same period of the previous year, mainly due to increased revenues and decreased research and development expenses as mentioned above. Financing Income / Expenses : Financing income, net for the 12 months of 2024 was approximately $4.2 million , compared to approximately $0.5 million in the same period of the previous year. Financing income, net for the fourth quarter of 2024 was approximately $4.6 million , compared to approximately $0.3 million in the same period of the previous year. The increase in financial income, net, during the 12-month period and the fourth quarter of 2024 as compared to the respective periods of 2023 was mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 2024 fund raising. Pre-funded warrants and warrants were classified as a liability on the consolidated statements of financial position, were initially recorded at fair value and subsequently remeasured at each reporting period using the Black - Scholes option pricing model. As a result, during 2024 the Company recorded net financial income, related to pre-funded warrants and warrants of approximately $3.4 million . Net Loss : The net loss for the 12 months of 2024 was approximately $18.1 million , compared to approximately $26.0 million in the same period of the previous year. The net loss for the fourth quarter of 2024 was approximately $5 thousand , compared to approximately $7.3 million in the same period of the previous year. The $7.9 million decrease in net loss for the 12 months of 2024 as compared to the 12 months of 2023 was primarily due to increased revenues, decreased research and development expenses and increased financial income, net related to warrants, offset by increased general and administrative expenses as mentioned above. The $7.3 million decrease in net loss for the fourth quarter of 2024 as compared to the fourth quarter of 2023 was primarily due to increased revenues, decreased research and development expenses and increased financial income, net related to warrants as mentioned above. *********************************************************************************** For the financial tables click here . *** Conference Call & Webcast Details: Thursday, March 6 , 2025. 9:00 AM EST 4:00 PM IDT To join the Zoom conference, please register in advance here Or join via audio US: +1 507 473 4847 or +1 564 217 2000 or +1 646 558 8656 or +1 646 931 3860 Israel : +972-3-9786688 Webinar ID: 870 4653 3198 More International numbers 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: 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 Evogene's success with creating collaborations for small-molecule drug discovery, with mid-size bio-tech companies and academic institutions, creating exit events for part of Evogene's subsidiaries, continuance of delivering castor seeds to its partners throughout 2025 and the subsidiaries' success in their strategic fundraising activities. 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 , Hamas and Hezbollah 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. Evogene Investors Relations Contact: Email: [email protected] Tel: +972-8-9311901 Logo: https://mma.prnewswire.com/media/1947468/Evogene_Logo.jpg View original content: https://www.prnewswire.com/news-releases/evogene-reports-fourth-quarter-and-full-year-2024-financial-results-302394582.html SOURCE Evogene