Evogene(EVGN) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of June 30, 2022, the company maintained approximately $35.3 million in consolidated cash, cash-related accounts, bank deposits, and marketable securities, with no bank debt [18] - Revenues for Q2 2022 were $312,000, compared to $135,000 in the same period the previous year, primarily due to initial sales of Lavie-Bio's Thrivus product and Canonic products in the Israeli market [20] - The net loss for Q2 2022 was $9.8 million, compared to a net loss of $6.9 million in the same period the previous year [22] Business Line Data and Key Metrics Changes - Lavie-Bio's Thrivus product saw initial sales contributing to revenue, with plans for expanded production in 2023 [20][13] - R&D expenses for Q2 2022 were $5.4 million, up from $5 million in the same period the previous year, driven by increased activities in Lavie-Bio and Biomica's Phase 1 trial [20] - Business Development expenses rose to approximately $1 million in Q2 2022 from $700,000 in the same period the previous year, reflecting recruitment efforts [21] Market Data and Key Metrics Changes - The strategic collaboration with ICL, which includes a $10 million investment in Lavie-Bio, aims to develop novel bio-stimulants, enhancing agricultural sustainability and productivity [8][9] - The company is targeting to launch new varieties of Canonic products in the second half of 2022, addressing demand for high THC [34] Company Strategy and Development Direction - The company aims to leverage its technology engines through dedicated subsidiaries, with a focus on attracting high-value partners and investors [16] - The strategy includes ensuring each subsidiary has its own financial resources, reducing reliance on Evogene's budget over time [31] - The company is exploring new activities that can benefit from its technology, with a focus on collaborations that can inject cash into the company [31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the recent strategic collaborations and investments as evidence of the value being created by Lavie-Bio and Biomica [5] - The company is optimistic about the potential for increased revenue from Canonic products in the second half of the year, with new product launches planned [34] - Management emphasized the need to balance cash on hand while expanding technology applications into other fields [30] Other Important Information - The company is under no obligation to update forward-looking statements unless required by law, and it cautions that actual results may differ from anticipated results due to various factors [3][4] - The investment from ICL is structured under a SAFE agreement, allowing Lavie-Bio to continue its development and growth [22] Q&A Session Summary Question: Discussion on Lavie-Bio's collaboration with ICL - Management indicated that the collaboration focuses on bio-stimulants and that there is significant value in working with a fertilizer company like ICL, which has extensive experience in the field [25][26] Question: Importance of FDA advisory committee meeting for Biomica - Management acknowledged the significance of understanding FDA expectations for microbiome-based products but deferred specific details to another team member [27][29] Question: Balancing cash on hand while expanding technology applications - Management reiterated the goal for subsidiaries to have their own financial resources and mentioned ongoing discussions with investors for additional funding [30][31] Question: Valuation parameters for the $10 million investment in Lavie-Bio - Management could not disclose specific details of the SAFE contract but expressed satisfaction with the deal's terms and its positive implications for shareholders [33] Question: Granularity on revenue from Lavie-Bio and Canonic - Management expects increased revenue from Canonic in the second half of the year, with new product launches planned [34]