Evogene(EVGN) - 2022 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of the end of Q3 2022, the company has a consolidated cash position of $38 million, which is expected to last until late 2024 [7][29] - The consolidated cash usage for Q3 2022 was approximately $7.3 million, with a cash burn rate for the first nine months of the year at $25.9 million [30][31] - Revenues for Q3 2022 were $466,000, compared to $151,000 in the same period the previous year, primarily due to a collaboration agreement [32] Business Line Data and Key Metrics Changes - Lavie Bio received a $10 million investment from ICL, which is expected to enhance its product pipeline and commercialization efforts [9][12] - Biomica is progressing in its Phase 1 clinical trial for BMC128, with the third patient dosed recently [15] - Canonic launched its second-generation cannabis products with higher THC levels and has initiated a licensing agreement with GroVida for commercialization in Europe [18][21] Market Data and Key Metrics Changes - The medical cannabis market in Europe is estimated at approximately €400 million, indicating significant growth potential [21] - The global demand for biofuel is increasing, which may enhance the market for castor oil derived from castor beans [25] Company Strategy and Development Direction - The company aims to strengthen its financial position by pursuing fundraising for its subsidiaries and establishing collaborations that provide non-dilutive payments [8][28] - The focus will shift towards existing activities and commercial aspects rather than new initiatives, particularly in the case of Canonic [38] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the volatility in financial markets, especially in the biotech sector, but expresses confidence in navigating these challenges [6] - The company is optimistic about the potential for fundraising in the short to mid-term for subsidiaries like Biomica and Canonic [41] Other Important Information - The company has no bank debts and is working to reduce its cash burn in 2023 [29][31] - A leadership change at Canonic has been announced, with Eyal Ronen appointed as the new CEO effective January 1, 2023 [23] Q&A Session Summary Question: Can you elaborate on your business plan and fundraising opportunities? - The CEO indicated that Biomica is well-positioned for near-term fundraising, with other subsidiaries like Canonic and AgPlenus expected to follow [38] Question: What can we expect in the spring 2023 update for Biomica? - The focus will be on safety results from the clinical trial, with potential indications of efficacy being disclosed if observed [39][40] Question: How are you understanding the financial resource requirements for each subsidiary? - Each subsidiary is establishing clear targets and budgets for 2023 and 2024, with the company confident in its ability to fund ongoing activities [41]