Conference call and webcast: today, August 31, 2022, 9:00 am
ET
REHOVOT, Israel, Aug. 31,
2022 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN)
(TASE: EVGN), a leading computational biology company targeting to
revolutionize life-science product discovery and development across
multiple market segments, announced today its financial results for
the second quarter ended June 30,
2022.
Mr. Ofer Haviv, Evogene's
President and Chief Executive Officer, stated, "We are
very pleased with the two recent important developments that have
taken place at the Evogene group: namely, the strategic
collaboration and $10 million
investment by ICL, a leading global specialty minerals company,
into our subsidiary, Lavie Bio; as
well as the launch of the Phase I first in human clinical trial, by
our subsidiary, Biomica."
"The strategic collaboration between ICL and Lavie Bio and $10
million investment, combines Lavie
Bio's ag-biologicals expertise, built on Evogene's
Microboost AI tech engine, with ICL's fertilizer experience,
enabling the development of a pipeline of innovative bio-stimulant
products for agriculture. Especially in a time of food scarcity,
high prices, and macroeconomic uncertainty, Lavie Bio and ICL's shared vision is to enhance
global food quality, agricultural sustainability, and increased
productivity. ICL will join Corteva, a major U.S. agricultural
chemical and seed company, as well as Evogene, as a new shareholder
of Lavie Bio and I am very proud
that these two agricultural giants have a strong interest in what
Evogene has built."
"From Evogene's standpoint, this investment in our subsidiary
Lavie Bio, is an additional key
milestone that demonstrates the power of our business model,
whereby we are leveraging the value of our tech engines through
dedicated subsidiaries. It shows that our hard work in building,
investing in and strengthening our subsidiaries, all of which are
leveraging our underlying computational predictive biological tech
engines, is the right strategy and bears fruit."
Continued Mr. Haviv, "The second important development
was the launch by Biomica of its phase I clinical trial and the
announcement that the first patient was dosed in its Phase I
clinical trial for its microbiome-based immuno-oncology drug
candidate, BMC128. The drug candidate is a consortium of microbes,
which Biomica selected through a microbiome analysis via our
MicroBoost AI tech engine."
"While Evogene has traditionally leveraged its platform and AI
technology engines towards agriculture, Biomica is proof that we
are uniquely positioned to play an important role in human health
and is strong validation that our technology can be leveraged
across multiple and massive industries."
"Finally, we continued to strengthen our management team,
recently adding Eyal Ronen, as
Executive Vice President of Business Development bringing us over
20 years of extensive business development experience with biotech
companies. Eyal's focus is to create and bring us additional value
by building new partnerships or forming new subsidiaries,
leveraging our technology engines and expanding our activities into
new areas. I strongly believe that Evogene has significant untapped
potential in its technology engines, and Eyal will focus on
realizing some of that value."
Mr. Haviv added, "Evogene today is at a key inflection
point, whereby we are meeting critical milestones and the inherent
value of our subsidiaries is becoming increasingly obvious.
Evogene's goal in the near term, is to continue to bring high
value-adding partners and investors at the subsidiary level, who
understand and can value the potential from the products that our
subsidiaries are developing. This we believe will demonstrate in a
very public way, the significant untapped value contained within
our activities."
"Our target is that each subsidiary will have its own financial
resources to support its activities until its success, while we at
Evogene, in addition to being a major shareholder, continue to play
a major role in maintaining and building their competitive
advantage through our tech-engines."
"In parallel, we are targeting and exploring the potential to
establish new activities that can benefit from our technology. This
is the main mission of our new EVP of Business Development,
Eyal Ronen, and we are already
starting to see some of his positive impact," concluded Mr.
Haviv.
Consolidated Financial Results Summary
Cash position: Evogene continues to maintain a solid
financial position for its activities with approximately
$35.3 million in consolidated cash,
cash related accounts and marketable securities as of June 30, 2022. Approximately $3.6 million of Evogene's consolidated cash is
appropriated to its subsidiary, Lavie
Bio. The Company does not have bank debt. It is noted that
these amounts do not include the recent $10
million investment of ICL in Lavie
Bio, which was fully received in August 2022 and will be reflected in the
financial statements of the Company for the third quarter.
During the second quarter of 2022, the consolidated cash usage
was approximately $9.3 million, or
approximately $6.4 million, excluding
Lavie Bio. Out of the $9.3 million, $1.7
million is a non-cash charge related to foreign exchange
expenses due to US Dollar and New Israeli Shekel exchange rate
differences and a decrease in the market value of marketable
securities on Evogene's balance sheet.
As previously stated, Evogene's full year net cash burn rate,
excluding exchange rate impacts in 2022, is expected to be in the
range of $26-28 million including
Lavie Bio and $18-20 million excluding Lavie Bio, which manages its own cash
position.
Revenues: Revenues for the second quarter were
$312 thousand, in comparison to
$135 thousand in the same period the
previous year. Revenues were primarily due to the initial sales of
Lavie Bio's Thrivus product
(previously branded as Result) and sales of Canonic products in the
Israeli market.
R&D expenses for the quarter, which are reported
net of non-refundable grants received, were $5.4 million, in comparison to $5.0 million in the same period the previous
year. The increase in R&D expenses were primarily due to:
- Biomica's ongoing phase I trial of its first-in-human
proof-of-concept study in its immuno-oncology program; and
- Lavie Bio's activities
supporting the production and commercialization of its inoculant
product;
Business Development expenses were approximately
$1.0 million for the second quarter
of 2022, in comparison to $0.7
million in the same period the previous year. The increase
in the Business Development expenses was primarily due to
recruitment of business development personnel supporting the
commercialization activities of Evogene's subsidiaries.
General and Administrative expenses remained stable, and
for the second quarter of 2022 were $1.7
million, in comparison to $1.8
million in the same period in the previous year.
Operating loss: Operating loss for the second
quarter of 2022 was $8.0 million in
comparison to $7.4 million in the
same period in the previous year.
Financing expenses for the second quarter of 2022
were $1.7 million in comparison to
financing income of $0.6 million in
the same period in the previous year. The increase in financing
expenses was mainly due to the US Dollar and New Israeli Shekel
exchange rate differences between periods and a decrease in
marketable securities value as mentioned above.
Net loss: The net loss for the second quarter of
2022 was $9.8 million in comparison
to a net loss of $6.9 million in the
same period in the previous year. The increase in net
loss was mainly due to the financing expenses as described above.
Conference Call & Webcast Details:
Date: August 31, 2022
Time: 9:00 am ET; 16:00 Israel time
Dial-in numbers:1-888-281-1167 toll free from
the United States, or
+972-3-918-0609 internationally
Webcast & Presentation link available at:
https://www.evogene.com/investor-relations/presentations-and-webcasts/
The Company's investor presentation can be viewed at the above
link, which is in the investor relations section of the company
website.
Replay Information: A replay of the conference call will
be available approximately two hours following the completion of
the call.
To access the replay, please dial 1-888-326-9310 toll free from
the United States, or
+972-3-925-5901 internationally. The replay will be accessible
following the call for three days. An archive of the webcast will
be available on the Company's website
About Evogene Ltd.:
Evogene (NASDAQ: EVGN, TASE: EVGN)
is a computational biology company aiming to revolutionize the
development of life-science based products by utilizing cutting
edge technologies to increase probability of success while reducing
development time and cost. Evogene established three unique
technological engines – MicroBoost AI, ChemPass AI and GeneRator AI
– leveraging Big Data and Artificial Intelligence and incorporating
deep multidisciplinary understanding in life sciences. Each
technological 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 technological engines to
develop products through subsidiaries and with strategic partners.
Currently, Evogene's main subsidiaries utilize the technological
engines to develop human microbiome-based therapeutics by Biomica
Ltd., medical cannabis products by Canonic Ltd., ag-chemicals by Ag
Plenus Ltd. and ag-biologicals by Lavie Bio Ltd. 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" or
words of similar meaning. For example, Evogene is using
forward-looking statement in this press release when it discusses
its expectations with respect to value creation and potential
funding options, including through its subsidiaries, untapped
potential and value, including the potential to establish new
activities that can benefit from Evogene's technology, its and its
subsidiaries' expected trials, studies, product advancements,
pipelines, commercializations, collaborations, sales, launches,
milestones, target markets, cash usage and other plans for 2022 and
on, and the potential advantages of its technology. 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, 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 Investor
Contact:
|
|
Kenny Green
Email:
ir@evogene.com
Tel: +1 212 378
8040
|
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2022
|
|
2021
|
|
|
Unaudited
|
|
Audited
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 28,867
|
|
$ 32,325
|
Short-term bank
deposits
|
|
-
|
|
3,000
|
Marketable
securities
|
|
6,383
|
|
18,541
|
Trade
receivables
|
|
111
|
|
281
|
Inventories
|
|
162
|
|
92
|
Other receivables and
prepaid expenses
|
|
2,182
|
|
2,651
|
|
|
|
|
|
|
|
37,705
|
|
56,890
|
LONG-TERM
ASSETS:
|
|
|
|
|
Long-term
deposits
|
|
24
|
|
25
|
Right-of-use-assets
|
|
1,808
|
|
2,109
|
Property, plant and
equipment, net
|
|
2,495
|
|
2,073
|
Intangible assets,
net
|
|
14,630
|
|
15,207
|
|
|
|
|
|
|
|
18,957
|
|
19,414
|
|
|
|
|
|
|
|
$ 56,662
|
|
$ 76,304
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade payables
|
|
$ 1,324
|
|
$ 1,463
|
Employees and payroll
accruals
|
|
2,384
|
|
2,662
|
Lease
liability
|
|
754
|
|
974
|
Liabilities in respect
of government grants
|
|
126
|
|
89
|
Deferred revenues and
other advances
|
|
16
|
|
175
|
Other
payables
|
|
937
|
|
1,519
|
|
|
|
|
|
|
|
5,541
|
|
6,882
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Lease
liability
|
|
1,367
|
|
1,695
|
Liabilities in respect
of government grants
|
|
4,357
|
|
4,307
|
|
|
|
|
|
|
|
5,724
|
|
6,002
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Ordinary shares of NIS
0.02 par value:
Authorized −
150,000,000 ordinary shares;
Issued and outstanding – 41,202,018 shares
as of June 30, 2022 and 41,170,168 shares
as of December 31, 2021
|
|
234
|
|
234
|
Share premium and
other capital reserve
|
|
260,880
|
|
260,488
|
Accumulated
deficit
|
|
(224,165)
|
|
(207,069)
|
|
|
|
|
|
Equity attributable to
equity holders of the Company
|
|
36,949
|
|
53,653
|
|
|
|
|
|
Non-controlling
interests
|
|
8,448
|
|
9,767
|
|
|
|
|
|
Total
equity
|
|
45,397
|
|
63,420
|
|
|
|
|
|
|
|
$ 56,662
|
|
$ 76,304
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF PROFIT OR LOSS
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
Year
ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2021
|
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 549
|
|
$ 468
|
|
$ 312
|
|
$ 135
|
|
$ 930
|
Cost of
revenues
|
|
425
|
|
399
|
|
262
|
|
128
|
|
767
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
124
|
|
69
|
|
50
|
|
7
|
|
163
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
11,043
|
|
9,283
|
|
5,417
|
|
4,986
|
|
21,125
|
Business
development
|
|
1,870
|
|
1,242
|
|
962
|
|
672
|
|
2,738
|
General and
administrative
|
|
3,273
|
|
3,249
|
|
1,678
|
|
1,795
|
|
7,253
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
16,186
|
|
13,774
|
|
8,057
|
|
7,453
|
|
31,116
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(16,062)
|
|
(13,705)
|
|
(8,007)
|
|
(7,446)
|
|
(30,953)
|
|
|
|
|
|
|
|
|
|
|
|
Financing
income
|
|
485
|
|
617
|
|
444
|
|
565
|
|
1,935
|
Financing
expenses
|
|
(3,243)
|
|
(919)
|
|
(2,153)
|
|
(14)
|
|
(1,414)
|
|
|
|
|
|
|
|
|
|
|
|
Financing income
(expenses), net
|
|
(2,758)
|
|
(302)
|
|
(1,709)
|
|
551
|
|
521
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(18,820)
|
|
(14,007)
|
|
(9,716)
|
|
(6,895)
|
|
(30,432)
|
Taxes on
income
|
|
40
|
|
11
|
|
38
|
|
3
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Loss
|
|
$ (18,860)
|
|
$ (14,018)
|
|
$ (9,754)
|
|
$ (6,898)
|
|
$ (30,445)
|
|
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Equity holders of the
Company
|
|
$ (17,096)
|
|
(12,812)
|
|
(8,821)
|
|
(6,210)
|
|
(27,793)
|
Non-controlling
interests
|
|
(1,764)
|
|
(1,206)
|
|
(933)
|
|
(688)
|
|
(2,652)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (18,860)
|
|
$ (14,018)
|
|
$ (9,754)
|
|
$ (6,898)
|
|
$ (30,445)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share, attributable to equity
holders of the Company
|
|
$ (0.42)
|
|
$ (0.32)
|
|
$ (0.21)
|
|
$ (0.15)
|
|
$ (0.69)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing
basic and diluted loss per share
|
|
41,195,024
|
|
39,778,174
|
|
41,202,018
|
|
40,580,563
|
|
40,433,303
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
Year
ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2021
|
|
|
Unaudited
|
|
Audited
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
|
|
$ (18,860)
|
|
$ (14,018)
|
|
$ (9,754)
|
|
$ (6,898)
|
|
$ (30,445)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to the
profit or loss items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
717
|
|
672
|
|
371
|
|
342
|
|
1,302
|
Amortization of
intangible assets
|
|
577
|
|
462
|
|
242
|
|
232
|
|
932
|
Share-based
compensation
|
|
830
|
|
1,089
|
|
419
|
|
558
|
|
2,609
|
Net financing expenses
(income)
|
|
3,139
|
|
(7)
|
|
2,033
|
|
(893)
|
|
(884)
|
Increase (decrease) in
accrued bank interest
|
|
7
|
|
-
|
|
-
|
|
(12)
|
|
11
|
Pre-funded warrants
issuance expenses
|
|
-
|
|
212
|
|
-
|
|
212
|
|
-
|
Loss from derecognition
of property, plant and equipment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
121
|
Taxes on
income
|
|
40
|
|
11
|
|
38
|
|
3
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,310
|
|
2,439
|
|
3,103
|
|
442
|
|
4,104
|
Changes in asset and
liability items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in
trade receivables
|
|
170
|
|
14
|
|
55
|
|
11
|
|
(59)
|
Decrease in other
receivables
|
|
463
|
|
1,007
|
|
551
|
|
289
|
|
637
|
Decrease (increase) in
inventories
|
|
(70)
|
|
-
|
|
10
|
|
-
|
|
(92)
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
trade payables
|
|
(172)
|
|
355
|
|
(6)
|
|
232
|
|
625
|
Increase (decrease) in
employees and payroll accruals
|
|
(278)
|
|
(318)
|
|
(272)
|
|
(180)
|
|
127
|
Increase (decrease) in
other payables
|
|
(593)
|
|
(278)
|
|
(147)
|
|
(23)
|
|
290
|
Increase (decrease) in
deferred revenues and other advances
|
|
(159)
|
|
(21)
|
|
(99)
|
|
-
|
|
128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(639)
|
|
759
|
|
92
|
|
329
|
|
1,656
|
|
|
|
|
|
|
|
|
|
|
|
Cash received (paid)
during the period for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
received
|
|
80
|
|
145
|
|
31
|
|
76
|
|
297
|
Interest
paid
|
|
(227)
|
|
(138)
|
|
(103)
|
|
(81)
|
|
(315)
|
Taxes paid
|
|
(29)
|
|
(11)
|
|
(27)
|
|
(3)
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
$(14,365)
|
|
$ (10,824)
|
|
$ (6,658)
|
|
$ (6,135)
|
|
$ (24,716)
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
U.S. dollars in
thousands
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
Year
ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
2021
|
|
|
Unaudited
|
|
Audited
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(747)
|
|
(407)
|
|
(305)
|
|
(224)
|
|
(847)
|
Proceeds from sale of
marketable securities
|
|
12,149
|
|
406
|
|
2,725
|
|
205
|
|
4,395
|
Purchase of marketable
securities
|
|
(659)
|
|
(20,990)
|
|
(659)
|
|
(709)
|
|
(23,114)
|
Withdrawal from
(investment in) bank deposits
|
|
3,000
|
|
-
|
|
-
|
|
9,500
|
|
(1,000)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
$ 13,743
|
|
$ (20,991)
|
|
$ 1,761
|
|
$ 8,772
|
|
$ (20,566)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of ordinary shares, net of issuance expenses
|
|
-
|
|
27,922
|
|
-
|
|
814
|
|
29,582
|
Proceeds from exercise
of options
|
|
7
|
|
460
|
|
-
|
|
15
|
|
484
|
Repayment of lease
liability
|
|
(492)
|
|
(316)
|
|
(369)
|
|
(149)
|
|
(580)
|
Proceeds from
government grants
|
|
30
|
|
380
|
|
-
|
|
257
|
|
824
|
Repayment of government
grants
|
|
(14)
|
|
(20)
|
|
-
|
|
-
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
(469)
|
|
28,426
|
|
(369)
|
|
937
|
|
30,276
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate
differences - cash and cash equivalent balances
|
|
(2,367)
|
|
(85)
|
|
(1,880)
|
|
539
|
|
1,102
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents
|
|
(3,458)
|
|
(3,474)
|
|
(7,146)
|
|
4,113
|
|
(13,904)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of the period
|
|
32,325
|
|
46,229
|
|
36,013
|
|
38,642
|
|
46,229
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of the period
|
|
$ 28,867
|
|
$ 42,755
|
|
$28,867
|
|
$
42,755
|
|
$ 32,325
|
|
|
|
|
|
|
|
|
|
|
|
Significant non-cash
activities
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
|
$ 66
|
|
$ 42
|
|
$ 66
|
|
$ 42
|
|
$ 32
|
|
|
|
|
|
|
|
|
|
|
|
Increase of
right-of-use asset recognized with corresponding lease
liability
|
|
$ 30
|
|
$ 317
|
|
$ -
|
|
$ 155
|
|
$ 841
|
Exercise of pre-funded
warrants
|
|
-
|
|
$4,365
|
|
-
|
|
-
|
|
$ 4,365
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/evogene-reports-second-quarter-2022-financial-results-301615435.html
SOURCE Evogene