Evogene (EVGN) Q3 Earnings call transcript Nov 21, 2024
2min read In the latest earnings call, Evogene showcased a robust financial performance, strategic partnerships, and a promising outlook for the future. Ofer Haviv, the company's President and CEO, guided the call, detailing the company's financial highlights, operational achievements, and future growth strategies.
Financial Performance and Strategic Partnerships
Evogene reported a significant financial improvement in Q3 2024, with a total revenue of approximately $1.8 million, a decrease from the previous year's $3.8 million. This was mainly due to the absence of a significant license fee payment in Q3 2024. However, the company's financial health is promising, with total revenues for the first 9 months of 2024 reaching approximately $6.9 million, an increase from $5.1 million in the same period the previous year. The company's cash position is also stable, with an estimated $20 million as of September 30, 2024.
Evogene's strategic partnerships have been a key driver of its growth. One of the most notable collaborations is with Google Cloud to develop a generative AI foundation model for novel small molecule design. This collaboration is expected to position Evogene's AI tech engine at the forefront of generating and optimizing novel small molecules. Additionally, the company's subsidiary, Casterra, has achieved significant milestones in Kenya and Brazil, establishing a reliable seed production infrastructure and initiating the first shipment of over 100 tons of Casterra seeds.
Subsidiaries' Achievements and Future Prospects
Casterra, Evogene's wholly-owned subsidiary, has been instrumental in driving the company's growth in the large-scale commercial cultivation of castor. With the establishment of a reliable seed production infrastructure in Kenya and Brazil, Casterra is well-positioned to meet the global demand for a stable castor oil supply. The company's first commercial product, Yalos, has been well-received, with Lavie Bio expanding its use to winter wheat and soybean, expecting initial sales in spring 2025.
Another subsidiary, AgPlenus, has made significant strides in the development of fungicides to address Septoria, a significant threat to crops worldwide. The company has identified 3 protein targets using Campus AI and is currently testing approximately 1,000 compounds to develop innovative solutions for global crop protection.
Biomica, a subsidiary specializing in microbiome-based therapeutics, has completed its Phase I clinical study for BMC128, a microbiome-based therapeutic, with positive results in 5 patients. The company is now preparing for the IND submission and has initiated new programs focused on obesity and longevity.
Challenges and Future Outlook
Despite the impressive achievements, Evogene faces challenges, such as delayed seed deliveries and the ongoing situation in Israel. However, the company is optimistic about the future, with a focus on continued revenue growth in 2024 and the anticipation of significant achievements from its subsidiaries.
In conclusion, Evogene's Q3 earnings call painted a picture of a company with a robust financial performance, strategic partnerships, and a promising future. The company's focus on AI-driven technology, strategic collaborations, and a diverse network of partnerships position it well for continued growth and innovation in the life sciences sector.