Evogene (EVGN) 31 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Evogene's Second Quarter 2022 Results Conference Call. All participants are present in listen-only mode.

Following managements formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions].

conference recorded this XX, reminder, a is August being XXXX. As

will to begin, today's note and facts review the conference call the which certain regarding Litigation management regarding that way business I performance read earnings and and we within to Act and results in events, caution in to release release, call forward-looking Securities not may XXXX. that future statements earnings on relate Commission U.S. would Evogene's statements Securities forward-looking strategy, earnings Before you in uncertainties this of Reform with like of that the Evogene. Evogene's made statements risks historical Exchange encourage deemed statements filings that are conference states during statements of by forward-looking meaning Private similar and be future operations, constitute this and made the earnings a I the

date found impact of factors discusses are true call the XXXX, All and the is new the statements Evogene subsidiary using example, its fields studies, only announcement the as expected forward-looking disclaim it in impacting speak collaborations, of expected forward-looking to its alter go of of at and potentially to fundraisings including forward-looking now Ofer level, or Many the expressly with otherwise, is that like statements for launches, potential burn obligation of rate, results. our Commission. information to anticipated U.S. no of will events be update otherwise the turn of performance by of beyond the For to reports as Exchange risk trials and publicly future whether any advantages please in as Evogene its activity. would and information, under results. technology Securities to results our the XXXX our entry into whether made differ come herein from required expected detailed commercialization, materially call anticipated milestones, and its can a More new pipelines, so. forward-looking I Evogene factors Ofer, this value product control cause ahead. their plans except and We filed CEO. the results, about potential may adversely do subsidiaries, potential obligation creation, law. said when expected or statements, That result actual other and Evogene’s statements Haviv, over advancements, path to

conference joining Thank you XXXX our quarter for us second call. today for

with you happy are that us you with have Evogene events and important in We review very to recent place took Group.

The investment million in announcement by X first dose of collaboration the on announced and strategic clinical Lavie-Bio. and patient the ICL Biomica trial the in Phase the $XX

the financial [Technical provides to value and the shortly. over The summary. can joining found press a provide We milestones Manager we are color Lavie-Bio Difficulty] to these to and which Lavie-Bio, release provide I short & Biomica and their me developments, additional of go very believe call evidence we our some today's some CFO Yaron have the with that Commercial Russ cover General Putland, continue this Today is EVP on and and create pleased will on be in of upcoming Eldad, activities will expect. Inc.

we to that happy Following all will questions. your take be

we that recent management review the start I events, want team. continue Evogene’s to to strengthen I Before to emphasize

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joined XX U.S. progress start experience to increasing. commercial of The Lavie-Bio’s am the sophistication Lavie-Bio’s some consumer level I and Manager grow and Putland of Lavie-Bio high Russ work of to is and Lavie-Bio’s and Vice I'm share DuPont, name with spanning in down XXXX I'll we today. the and excited then over my you I and Commercial world's into FMC, in at previous have and General is direction mentioned, at be able to Ofer and with May years. detail. Cargill population strategy As can continues Executive President leadership subsidiary.

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advance will and and to with use crop be additional with and we soybeans, such the we as durum, barley, Additionally, label crops broaden update [indiscernible]. canola oats, working will

in our will Rot to to take Moving as expect. continue see standard conducted to expect we continue Fruit we'd the in the end regulatory we And and to with tends Bio-Fungicide Program progress. for a our candidate EPA our Federal to about is submit our months, of pesticides dossier update U.S. we registration XX results trials LAV.XXX. XXXX bio timeline to leading Prior we The progressing exciting pipelines, as field vineyards.

to ongoing significant milestones. we season you of specifically you the approval. Back the launch described With support Lavie-Bio. It XXXX Lavie-Bio the I thank to me activity that to fruitful emphasize more at want is and our for at back pipeline. goals staff with look could to hit Ofer boosted this as all R&D things be spending is Thank for group I'll turn pending growing the forward soft you important without intent again achieved with MicroBoost between in Our and engine and that we our tech I achieve Lavie-Bio, progress to speaking this for Ofer. and to their our that regulatory Evogene time activities our Ofer. Evogene, not

Evogene we subsidiaries summary, continue a milestones value of the obvious. value investors way, level and believe increasingly becoming high to critical in is today at the adding and bring public and to meeting untapped will in new very contained value term In Russ. point significant can you, activities. are our This, the is at from value key partners our goals Evogene the whereby that is inflection developing. within inherent the our demonstrate products the are we who subsidiaries potential understand a subsidiary Thank

updates. strategic discussion extent we our level to partnering with and laws under potential investors permissible security and fundraising to continue towards potential intend at We subsidiary the financial and the provide

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now solid with bank to the financial June of million securities Ofer. activities a XX, Evogene financial for you Thank will cash, as I related any $XX.X the Lavie-Bio. These to the summary. deposits, accounts, of maintain position quarter. XXXX. in continues of approximately marketable debt. was do cash provide consolidated include million million its amounts We cash do $X.X is consolidated Approximately Evogene’s not investment $XX appropriated third Lavie-Bio, its ICL subsidiary have not bank which in and completed during

U.S. marketable million the During the Out approximately differences approximately a related the in our Shekel to sheet. $X.X million value of exchange of or $X.X due exchange balance second was quarter $X.X million usage charge excluding decrease of foreign million, XXXX is a expenses and $X.X non-cash securities Lavie-Bio. to on dollar consolidated and market the cash rate

remained in rate highlight expected $XX million, to in in in increase cash of in $XXX,XXX of for General range rate the period and Thrivus the quarter Lavie-Bio, period own comparison would in stable for the which primarily personnel. $X the administrative the expenses sales Israeli of the quarter $X.X its expenses increase XXXX due were due the previous the in the was the earlier. were million $XXX,XXX I business same marketable in recruitment was second reported X.X XXXX increase primarily year. financing $XXX,XXX the same I initial The of in the specific on the of business were the market. $X.X like net in previous our of $XX for quarter the million of and exchange U.S. XXXX million a $XX million year. to value of million received was in the development Lavie-Bio’s Lavie-Bio, previous to previous $X.X grants the year. $XX XXXX are the were impacts year. the Canonic development manages and excluding quarter, expenses expenses product same sales second The As the million non-refundable in net trial. million products to same in R&D million securities million to of which to $X.X Biomica’s including million Development previous second mentioned period periods in Operating to to Revenues and period XXXX, Business full R&D its discussed, rate to comparison XXXX in be in second period of the of expenses activities, comparison for $X income decrease and exchange in $XXX,XXX the Revenues expenses the was excluding quarter of $X.X net to an in approximately quarter same were P&L. to and year. in the Financing year. recent financing in in million to differences was position. quarter burn previous expenses the we've previously $X million dollar mainly year. to for comparison net Shekel for to previous value in due same year X in second to loss The due Lavie-Bio’s as R&D primarily Phase comparison is same the between some the were in The to comparison second now start $X.X items comparison for million a period in loss loss the increase period in

ICL mechanism. in $XX invested Lavie-Bio million As SAFE a mentioned earlier, via Ofer

due an is funds a investor, tool equity familiar automatically between of immediately, enables growth, next agreement to Lavie-Bio investment discount determined its and future future elaborate. fundraising company SAFE today with common for the a will to the It and this its which into and has for whereby would stands in become you to next at I development, to a completing and simple who round. to from investor an like round. convert the equity, price the agreement mid-August, company less to those a financial be Lavie-Bio agreement transfers are ICL the simplicity. was For concluded share The investment, further at investment prior a continue increased value in SAFE into

strategies we goals. cash subsidiaries Group to As investors value adding our to pursue and advance capitalized, continue Evogene mentioned, well position, their to partners are Ofer strengthen and also have ensuring

remain that the volatile, the would lower with Session milestones. Finally, in you to for the I both and Ofer reducing have. near With looking now to like Question-and-Answer markets distant term, are Operator. capital we expenses activities questions while any call by open may

you. Thank [Operator Instructions].

first is Kristen from Cantor go question The Kluska Fitzgerald. of Please ahead.

and morning good Thanks good afternoon, question. my everybody. for taking Hi,

I field, data first I The to could ICL? that about bio-stimulants for how particular collaboration the in to in synergies key a one that the in of the you some And of And guess you components potential of do you overlap had with moving are the the the Lavie-Bio, regard specific discuss across led players thinking activities and forward? believe deals other bio-pesticides? in there's lot the of both

is And this question. will thank our in you analyst this participating for take Ofer I so Okay, and call.

I the So, leading and in to bio-pesticides. in and of strategy more the fertilizer. But we great nice and course, that centers located a Israel. of are work believe working that and technology has very don't products we too we in thought And bio-stimulant a this bio-stimulant. be a fertilizer mainly things one in will microbes ICL to world in the are of really the And experience with that more The is And our are much very focus They research world create it's see very, processes. be the to use value will -- a that overlap would broad related headquarters between partner we combine that Lavie-Bio. of bio-pesticides. not in long-term fertilizer going we of we different we then type there that -- think and regulatory their of bio-stimulant the field is using Lavie-Bio, ICL company a can I see together future could it's synergy. of worldwide. and significant have quite intending and and to type of is that also area a be a are with bio-stimulant its bio-pesticide, different here

will it's of we all program with what feel the we based the of ICL. bio-pesticides not addition So the going be it in will our have to with to be activity I from area on far and our continue relationship in run already will of that business we results pipeline. in the which the are plan Lavie-Bio, them

in so to then another Biomica. much I that. And Okay, had for regards question thanks

we're under microbiome advisory the month So based from committee meeting a a away product. for different

for? indication the the also, potential could it's So, another for the importance And approval of really the mean talk you and what mechanism, is about understanding your in a could class and different while what microbiome company? meetings FDA a first looking

repeat connection the very The wasn't please? answer, well, you can

but Yeah, like class, I approval, this asking product, looking again then committee for what a was based microbiome microbiome it based so newer seen approval is important scheduled another a in haven't an drug field we how understand because for regard with yet? to the potential is Biomica, meeting also helping first just and advisory for the could to that's any be company FDA

But will are and about. in this ask address with talking you I'm meeting you question it's call, contact abroad. with him that this familiar sorry do, what okay. he not this can Elran to I is less specific participating I'm is I if

how fields applications but And the absolutely. also looking expand are light subsidiaries into Yeah, then then you hand thinking of balancing your for other technology me, as thanks just on last Thanks. cash again? forward, well, the about in to moving

expecting our will their are that Okay, message that auto have so that subsidiary resources. I the script think is main we my in

we we in in investment company in now future. with this good the that the think a shape and Lavie-Bio extend are I might

well. they another might invest additional this that are also talking with I as subsidiary think investors and with with company of another talking will investors, are in We that we set

Business target invest resources. is from that own is will cash -- need will be we additional be each budget of other so purpose -- that And because Evogene’s the to as are different in that through can its that received our many the of there EVP, I that have we already the areas benefit will recruit our Development, Eyal least have for Ronen, technology. from cases, years And So at Evogene might not some what cash our use what this company. our to And we to financial look in a area is participate And will will in are of do I'm one trying say the to subsidiary opportunity. agreement subsidiary collaboration the also us type and this the that also allow is collaborations lower. can new money to inject that the think

milestone is that maybe upfront structure did that of type royalty, in payments, the So, just we and same past.

fund way Evogene. will future another activity this be in So to

So to respect to third cash Evogene, more -- start looking some the the conduct through parties through fundraising in them and to the we their the looking additional we that for fund future, and bottom going the also also have generate position -- short collaboration. [ph] subsidiary financial I'm at are resources we're least we're for by are main our bring funding when focus investments to our And agreements And so through opportunity line, is and to is in main with in also to revenue. how additional our looking on money. capital collaboration be on a what activity to are opportunity planning additional the subsidiaries use in see the and to But -- markets we of discussing. going level to technology always what now looking term, our the focus raise and financial to

thanks. Great,

of ROTH. ahead. The next Brian go question is Wright from Please

the Congrats literally And I window. construction morning. They're doing outside I Good quarter. on if this, apologize missed Thanks. my

of did the provide investment XX you million for Lavie? So, parameters in valuation any kind

and the limited partner of to for confidential. reason business as details competitive maintain details are the and the contract SAFE we various involved from unfortunately, So disclosing those various specific

very and deal, it especially for the involved; its can is including we good very, and pleased I ICL the terms what are believe shareholders. with Lavie-Bio that and say and all However, Evogene is parties

into that shareholders this itself. will be definitely think based investment positive event, the Evogene in will I on of it company Evogene for share, any be valuation current when market as converted very

I'm can't that something disclose I this we think that proud quite So is but about.

might some Great. minimum parameters? It sounds like valuation be there

Yes, yes. Yes.

Thank Great. Awesome. you.

between the Just a quarter, of quarter a very color of on the detailed and more could on helpful? would kind Canonic give on and for the you any us Lavie granularity question little modeling be that kind

can I we to second that is of are activity see year. half Canonic from this in What expecting revenue say the in increase some

addressing this to varieties are launch We new those September-October. for products demand very high launch planning just market We a during the THC. hope to

will the without start the see change the of a see this currently, year second details, in into in the getting job that from So we looking mean. that we don't we Canonic the were to in But revenue currently the existing products. half the expectation is

it's disclose at more and numbers. you calculate the can't previous So reports can you again, but to too try -- I look much less, or can

you. thank Okay,

Janney ahead. Montgomery question is next Scott. of The from Brett Please Reiss go

greater for Mr. spring Putland. a read are water Since amount the of for opportunity so thanks might unit? question This was usage Do to getting be use -- would you water yields. same the two. Hi, going in or effect the down ask per you

Yeah, yes, so -- I have in got of terms it.

water use, slight there of gain. terms is a In

mapping we'll notable not process water the with specifically out realm once in we're got to enough I a clearly, as don't comment to share and a of position environmental of know You gain that. far we that gained. amount do do a It we're we footprint but out nutrient we've think in or uptake public, clear. and know, seen nutrient the and of that We've that the along mapped little that efficiency more that efficiency. with today efficiency is on the we've carbon Clearly kind we're speak. that I that

right. Right,

favorable on that? that have tell you have a If real don't would you that, I important I it's to mean, people, news topic, so excite

emissions. GHG around our working looking I'm actually on efficiency, as and we use speak. sustainability I'm at land use, measurements that energy

have all to So time. for surely Bio-Inoculant. things period we are relatively not kind And something that should but we share the of benefit, only backdrop short that with of will happening our good in just a the

great. Great,

Now, the Phase results results to that that market the to on in X is trial? control that your or out release to favorable controls prior who it it's XXXX, the -- flow will joint venture come news where you trial, your the if are in you partner early see

So, themselves. the when executing hospital it trial, the we from clinical receive the that receive is they results in

yes, if So And the with the data we decide we this time will we'll trial, might share during the are receiving information. along public. the clinical information have trial we the enough of we clinical

So -- we're to necessarily the wait we clinical end the until of we don't trial. need not

good. That me. one, Last sounds for

in Just the talk can revenues. about you XXX,XXX

So us Canonic it that can that, seasonality, from type there things is cadence color if in Lavie-Bio are just us of product, some some seasonal And sales you is of on? then educate of that? embedded give you could less a on

wasn't we correctly this doing finished that revenue. production, succeeded that proud seasonally place. that product we It we sure described our the make target. you Maybe is everything it, to with have think and significant minute to all we sold was this of very, think everything. in I we make the could in Russ looks it selling almost the this And described but Lavie-Bio parts it it mainly I product. to that as and It very intention mainly produce a respect to we more were that correctly year sure main that are we type was generate

see it's hope you Next weather. affected to of to this the the same year. less product years year, crop so grow all is few here through still that this will on the the greenhouses, But revenue spring a crop have it's in can so cannabis Canonic production grow to because winter. to generated it's respect during of grow during in the and the is order Usually in and results With going summertime. the a magnitude be I higher going the you the better product. by effect with Yes, we the quality

and to October, some expecting now, share of the new those set in a products the I launch But call. as performance I variety about of next in analyst just during than be can day September, performance So to more some them we you of at variety. year. quite the revenue through will the with on are them you new are described And generate the of of new we happy -- positive

Great, thanks questions. my for taking

There Instructions]. [Operator at are further no this time. questions

X-XXX-XXX-XXXX. Before that call I In of closing after his to this U.S. scheduled Haviv, conference. Internationally, with call ahead would Israel, statement, you the Q&A of remind hours Mr. is Haviv please Ofer please would go call statement? a XXX-X-XXX-XXXX. begin concluding to like ask to to participants replay In make please XX-XXX-XXXX. call the two I End Mr. your like

some you the all forward next for of to in And the In and our Microbe you H.C. and joining will our I forward seeing at today. you call. look updating October. call I meantime, Thank progress in September, I LD with the Thank there. day. Conference look presenting Yes. good the to in you attending Wainwright be [ph] Conference

Thank XXXX you. conference you second results Evogene’s your This concludes participation. call. quarter for Thank

and go may You ahead disconnect.