Evogene(US:EVGN)2021-08-11 17:55Financial Data and Key Metrics Changes - Evogene reported consolidated cash of approximately $65.4 million as of June 30, 2021, with a cash usage of approximately $11.3 million in the first half of 2021, and $5.7 million in the second quarter [45][46] - Revenues for the second quarter of 2021 were $0.1 million, down from $0.3 million in the same period the previous year [49] - R&D expenses increased to $5.0 million in Q2 2021 from $3.9 million in Q2 2020, attributed to product development activities [50] - Operating loss for Q2 2021 was $7.4 million compared to $5.2 million in Q2 2020 [51] Business Line Data and Key Metrics Changes - Biomica is preparing for its first-in-man proof-of-concept study in immuno-oncology and reported significant pre-clinical data for its candidate BMC128 [27][28] - Canonic is establishing its production and marketing infrastructure for medical cannabis products, with plans for a product launch in Israel in 2022 [31][32] - AgPlenus is making progress in collaboration with Corteva to develop novel herbicides and has achieved positive results in its internal herbicide program [35][36] - Lavie Bio is advancing its product pipeline with a focus on biostimulants and bio fungicides, expecting to launch its lead biostimulant LAV211 in 2022 [38][40] Market Data and Key Metrics Changes - The medical cannabis market in Israel is growing rapidly, with government approval for cannabis companies to export products, opening new markets for Canonic [87] - The market for innovative life-science products is characterized by high failure rates and long commercialization timelines, but Evogene's technology aims to mitigate these risks [21][22] Company Strategy and Development Direction - Evogene's strategy focuses on unlocking the value of its subsidiaries by potentially turning them into public companies, allowing for independent valuations [24][25] - The company aims to utilize advanced computational biology to enhance product development and reduce time-to-market [14][20] - The vision is to change how life science companies develop products, increasing success probabilities while reducing costs [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the advancements of subsidiaries towards commercialization and the potential for significant market opportunities [61][62] - The company is cautious about cash burn rates and aims to ensure that funding aligns with strategic goals [97][98] Other Important Information - The company has a strong financial position with no bank debt and is exploring ways to facilitate independent valuations of its subsidiaries [45][49] - The transition in leadership with Sarit Firon as the new Chairperson is expected to bring new energy and direction to the company [9][10] Q&A Session Summary Question: What are the initial market opportunities for the upcoming products? - Management indicated that they are in discussions with local distributors and expect significant revenue from the second year of product launches [54][56] Question: Why is the company considering turning subsidiaries into public companies now? - The management believes that several subsidiaries are advancing towards commercialization and that independent valuations will benefit shareholders [60][62] Question: How does the company view the potential for additional product pipelines beyond the main programs? - Management confirmed that each subsidiary has a promising product pipeline beyond what has been disclosed, and they are exploring additional opportunities [66][68] Question: What is the expected cash burn for next year? - Management expects cash burn to be managed carefully, with potential collaborations providing funding for ongoing activities [99][100]