Evogene's Q2 2025: Unraveling Contradictions in Castor Seed Strategy and Financial Outlook

Castor seed inventory and sales strategy, financial stability and cash runway, castor oil business announcement and focus, Casterra seed deliveries and follow-on orders, plans for commercializing castor seed inventory are the key contradictions discussed in Evogene's latest 2025Q2 earnings call.



Revenue and Operational Efficiency:
- Evogene Ltd. reported total revenues of approximately $3.2 million for the first half of 2025, compared to $2.3 million in the same period in 2024, indicating a 43.5% increase.
- The growth was primarily driven by strong seed sales from the Casterra subsidiary and a cost reduction plan implemented during the period.

Operational Expense Reduction:
- Evogene saw a significant decrease in total operating expenses for the first half of 2025, to approximately $7.7 million from $11.1 million in the previous year, a 30.6% reduction.
- This decrease is mainly attributed to reduced activity levels across subsidiaries, including reduced R&D activities at Biomica and the discontinuation of operations at Canonic.

Strategic Shift and Asset Sales:
- Evogene announced the sale of most of Lavie Bio's activity and the MicroBoost AI platform for agriculture to ICL, generating cash proceeds of $15.25 million and $3.5 million, respectively.
- The strategic focus on maximizing the value of ChemPass AI and enhancing cash flow from subsidiaries drove these transactions.

Investment in ChemPass AI Platform:
- The company completed version 1 of its generative AI foundation model for small molecule design, enhancing ChemPass AI's capabilities.
- This investment aims to elevate the platform's performance, enabling it to serve both pharma and agriculture verticals and facilitate future product development.