Cibus' Q2 2025: Navigating Contradictions in EU Regulations and Biofragrance Revenue

EU regulatory timeline, biofragrance revenue timeline, EU regulatory timeline for commercial products, and gene editing approval in the EU are the key contradictions discussed in Cibus' latest 2025Q2 earnings call.



Revenue Projections and Expense Management:
- Cibus, Inc. is focused on achieving initial royalty revenue in 2026, with a significant potential in rice herbicide tolerance traits, such as HT1 and HT3, which can generate over $200 million in annual royalty revenue across target geographies.
- The company plans to reduce its annual net cash usage to approximately $30 million by 2026, reflecting strategic capital allocation and operational discipline to extend runway while pursuing commercial opportunities.

Regulatory Progress and Market Access:
- Cibus is witnessing acceptance of gene editing technologies globally, with progress in EU trialogue discussions expected to resolve within six months, opening up significant market access and commercial opportunities.
- The company's regulatory advancements, including recent positive determinations in Ecuador and ongoing approvals, are enhancing its global market penetration and business catalysts.

Biofragrance and Sustainable Ingredients Business:
- Cibus anticipates nominal revenues from its biofragrance products later this year, with commercial expansion expected in 2026, driven by strong interest from the consumer packaged goods industry.
- The company is actively pursuing partnerships for sustainable ingredient programs, aiming to capitalize on the growing demand for bio-based products beyond fuel, including nonallergenic crops and nutrient use efficiency traits.

Rice Herbicide Tolerance and Partner Engagement:
- Cibus has made significant progress with its rice herbicide tolerance traits, delivering stacked traits to partners and securing agreements with companies like Semilano, marking its fifth customer in the Americas.
- The company's standardized platform enables rapid trait development, accelerating the adoption of gene-edited traits and driving customer interest in advanced weed management solutions.