Financial Data and Key Metrics - Total revenues for the first six months of 2024 reached approximately 1.3 million in the first half of 2023, driven by Casterra's seed supply and Lavie Bio's licensing agreement [6][29] - Q2 2024 revenues were approximately 654,000 in Q2 2023, primarily due to increased revenues from Lavie Bio [7][30] - Net loss for the first half of 2024 was approximately 14.8 million in the same period last year, driven by increased revenues and decreased operating expenses [7][34] - Projected cash usage for 2024, excluding Biomica and Lavie Bio, is approximately 12.5 million in 2023 [7][29] Business Line Performance - Casterra: Received an additional purchase order of 8.4 million expected to be fulfilled by the end of 2024 [8][14] - Biomica: Preliminary Phase 1 trial results for BMC128 showed promising efficacy and safety in treating refractory cancers, with data presented at ASCO 2024 [9][16] - Lavie Bio: Expanded its bio-inoculant product Yalos to winter wheat, doubling its market potential, and identified over a dozen novel microbial candidates using its BDD technology platform [9][15] Market and Strategic Direction - The global castor oil market is projected to reach 1.68 billion by 2028, driven by increasing demand for sustainable and renewable resources in bio-based industries [20][22] - Casterra aims to establish itself as a leading provider of sustainable vegetable oil feedstock, particularly for the biofuel sector, leveraging its elite castor seed varieties and advanced cultivation techniques [18][21] - Evogene's AI-driven tech-engines (MicroBoost AI, ChemPass AI, GeneRator AI) are designed to optimize life science product development across various market segments, focusing on efficiency and cost-effectiveness [10][11] Management Commentary on Future Prospects - Management anticipates continued revenue growth in the second half of 2024, driven by Casterra's seed supply and Lavie Bio's product expansion [6][30] - The company is exploring the potential to expand into castor oil production, which could further enhance its market position and revenue streams [27][28] - Evogene's subsidiaries are advancing their pipelines, with significant milestones expected in Q4 2024, particularly in Lavie Bio's field trials and Biomica's clinical development [15][17] Q&A Session Summary Question: What is Casterra's current backlog for 2025, and will oil production be based in Africa or Brazil? - Casterra is working on its 2025 backlog, with details expected in the next analyst call. Oil production is under evaluation, with potential locations in both Africa and Brazil [35][36] Question: Can you provide an update on AgPlenus? - AgPlenus is focused on building a new pipeline, particularly in fungicides, and is collaborating with Bayer and Corteva. Updates are expected in the next quarter [37][38] Question: What is the trajectory of Casterra's castor seed launch in 2H 2024, and what is the current gross margin profile? - Casterra aims to fulfill 8.4 million in seed orders by the end of 2024, with a current production capacity of over 1,000 hectares. Gross margins are high, particularly in seed sales, with potential for further improvement in oil production [40][42] Question: When should we expect material revenue contribution from Yalos? - Yalos is expected to see material growth in sales by 2026, with early adoption in soybean and canola markets starting in 2025 [43][44] Question: What is Evogene's expected cash position by the end of 2024? - Assuming 18-19 million by the end of 2024 [46][47]
Evogene(EVGN) - 2024 Q2 - Earnings Call Transcript