Evogene (EVGN) 17 Nov 222022 Q3 Earnings call transcript

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

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

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

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

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

update discussing conference our focus our activities you on be on third of in quarter an review providing joining Thank in for topics. the and two My call, today's will XXXX.

second Evogene's status financial our achievement one, our update it; on strengthen latest plan one, first current and subsidiaries. to The and of the the

the will Yaron financial provide CFO review, the session. my will open After our we that, Eldad, Q&A Following summary.

navigate I you year As and in know, have or company the challenges. difficult that half are many continue sector, so. all a past volatile the and successfully highlight markets times, fallen especially valuation, will the those significantly financial over currently very want has and to Evogene very to biotech despite

of Evogene's activities the a our nicely have consolidated belief balance advancing we value third Evogene group. sheet. the significant quarter, our of million that, Beyond position, each To that subsidiaries and generates strengthen cash our for as $XX the end on are address of the

resources. working demonstrating developing listed continue biological engine. tech AI was event ag brings Any partners subsidiaries, value collaborations parallel, and Evogene's same capital A the our to believe subsidiaries, are allows the the with success subsidiaries subsidiaries the at This Evogene's plan, it. business the a utilizing balance of for our basis fundraising update strategic us will bring with we the a an we new enabling Bio sheet, which and hard its both subsidiary. to the and identify runway update strong Evogene of time. are and subsidiary on this demand cash extend the ultimately adding adding as and collaborations provides of its the that subsidiaries, We shareholders' take our Lavie tech in into investment to company. brings $XX subsidiary for during engine under capital valuation it financial us by of potential will The access to its on market $XX to third subsidiary. a starting quarter be extend new subsidiary investment Evogene's leading a In payments And plans, and value and the well with New pursue Such as Evogene's at [indiscernible] was made late the level are of Lavie It for lowers Evogene the non-dilutive revenue on our out further. to mineral for Evogene value investors. source this at investment inherent pursuing With and holding respect for achieved we for for subsidiaries. would which which in Bio, billion share and is specifically, to focusing and development fundraising by activities. payments on market enough Bio ICL, extend will of for include a product us MicroBoost that XXXX. to global stream the has ultimate we our now I collaborations product establish value a York based key ICL a investment development like made Lavie with identify our million partner continue expect step toward non-dilutive

reduce ICL at industry. LAV.XXX repeat In [ph], needs of right the ensures ICL food call can Bio's Lavie increased time than investment the was that an full value the powdery the investment Bio. the All-in-all, to their is macroeconomic first AI. Combining commercialization. success The Lavie its For driver investor. agriculture fact pending this and to with enrich advanced utilizing our Lavie just the the fullest collaboration much ICL and synergistic strong Evogene’s of the nature, investment the and us growing a in take player its product New type submitted package registration to even other and States create for the step biologicals potential experience focused This Lavie on and will collaboration for products is with, prior ICL's new standard with Evogene's novel is with strong novel statement with it At in by and with the to ag Lavie ICL's AI of I Lavie October, on line strong vision us speed data and investments goal sustainability would we financial in which and challenging for LAV.XXX, months, farmers' like $XX Lavie pipeline. now to and agriculture cutting-edge Evogene's a to naturally and biofungicide increasing major recent technology stage targeting The this products based long-term big rots knowledge same made at Bio, ICL ICL's advanced meet combining Bio. will quality, moving Bio with Environmental presented part efficiency, the experience, is This the enrich commercialization growth. then to brings the combined that biologicals productivity. Lavie Lavie be shares regard artificial attract the soft long-term final help timeline registration our is its product Bio is resources intelligence resources innovative bio-stimulant on Lavie bio-stimulant a partnered efficiency. with a mildews time, that focus ag we to Bio's prices global EPA, MicroBoost to that agriculture product ahead listed the fully fertilizer is to of now XXXX company. approval. time them all of uncertainty the time. enables leverage MicroBoost Corteva Lavie by the leading Bio ICL, that highly second and and The facilitate Protection United in development it's is expertise, are regulatory billion new novel has our right the grow biofungicide collaboration in with season, Agency, XX strategy. approach to which existing is interest Corteva, which a and strongly place Bio's global conference Lavie now uncertainty, believe partner, before product I technology fruit more with fertilizer portfolio. in a fertilizer Lavie especially during in unique at the to and York Bio's is enhance bacteria launch aligned hope our selected product have which tended solution products use adding a Bio developing being fertilizer

Biomica's Moving of in selected we the BMCXXX July, immuno-oncology to patient patient in of Biomica’s MicroBoost to Health XXXX programs. Haifa, concluded third drugs the engine. dosed an with their we focusing combination first AI leveraging label, as In candidate utilizing results developing evaluate Biomica, and immune clinical drug subsidiary the of Israel. inhibitor Rambam XX. cancer the the on X have Care data Campus in on primarily patients engine, tolerability human for now at drug tech Back designed based based preliminary in treatment consortium on readout trial is Phase our our in out to The patients. MicroBoost weeks, expect the was few Biomica’s microbiome, recent open tech is safety microbes in progressed microbiome trial a first If and Evogene’s spring checkpoint AI BMCXXX,

in We are of targeting the to complete later XXXX. trial part the

greatly broader recent regulatory by made drug the the by the seeing given to with progress advancement the FDA. positive with in announcement in of encouraged the are drug the based candidate the we human regard process are industry, [indiscernible] We microbiome

to ingredient cannabis. known compounds the relief cannabis the relief, THC been more. is allowed feedback the influence THC THC XX% market anti-inflammation, with so the also the far anti-anxiety, both of unique Israel while tech improved combo, October, using and company leveraging September, developed announced terpene THC and which the and launch higher identified. initiated two Moving In on of new to subsidiary products with engine. its focusing a the in GeneRator products, genetic our of were markers, Canonic, inflorescence. developing on aroma and maximum are They tech In Terpenes symptoms, scent market for in generation synergy level in and primary in Israeli products The with AI engine many profiles. products Israel of AI psychoactive medical these percentage is second the mental plant brands, provide pain GeneRator was third of XX.X%. excellent. new These cannabis our has anti-depression including

target in market cultivate interest estimated while cultivation September, and the and products in its at Under Canonic’s on GroVida addition, in varieties agreement a €XXX for at still total Their belief been Europe throughout those million take a XXXX. In licensing relationship in cannabis key agreement, a commercial cannabis the stage varieties the a Europe we commercialization the stage testament a to cultivation two market and of is cannabis sell Canonic Portuguese cycle. medical GroVida, market and new our for European market. for early sales company, the with royalties. our for cannabis with an of growth testing lines. we in EU of announced is in our of partner to Canonic our to based approximately in trends new GroVida's potential broadening GroVida our varieties will has the quality

Arnon with CEO Canonic's announced to of continue leadership change leave instrumental a to also appointed as in as week, Canonic role Evogene. in the developing beginning January the Canonic the parallel Vice of we who since Arnon and the he year. at Canonic, a end Heyman, been served as member of President, our at CEO are to the has Eyal incredible Development will Board Directors. Canonic. continue last Executive the of Board his CEO a we Finally, will Canonic He XXXX position in was and serve current Dr. Business Evogene’s market X, play from new products, thankful leading effective Ronen level. will role has in

conclude health strong wide days would broad will and range market itself human lubricants, I and oil on background the and to derivatives durability biofuel. that for development its on Canonic for ago. As have growth the like polymers, To seed move Eyal’s my enable and Canonic in is believe few given its as in growing globally, released cosmetics, today uses stage a biofuel and and for to expands plastic next in and Israel developer Global Casterra, focus the experience a review Applications billion our to of source industrial sales elasticity development. on castor Castor our highlight I latest $X.X high technology just business its announcement as we such oil worldwide. a increasing. and include in demand subsidiaries,

subsidiaries oil in Eastern starting hard As can our look in in subsidiaries, is African castor first step than group, engine fuels all At which is castor met it’s Farms, increase. volatility. fossil Africa weather royalties value Casterra’s milestones months our same serve we demand exclusive is few we the extensive distribution important the more replace Biology a beans the those we building, announcement signed on oil of for our the Castor the past is which adequate capital increase value. such believe cultivator Titan a beans, region throughout for latest production of to environmentally the provide as we showed our strengthening Zambia to source leveraging castor Titan derived South an biofuels, underlying an and This the Castor in creating our surrounding effective XXXX. cultivation of friendly summary, and agreement to see position informed sale from right have as with Zambian will are tech strong and it market has castor in In We a its work and strategy inherent and energy continent. products, that distributor several and expected Computational content the and into in as practice, are the and long-term it given investing will has high oil. current new leveraging of continues with Casterra’s industry. important Predictive cash and and technology agreement oil. Casterra time, biofuel

and being will subsidiary Our to role financial through a and is to Evogene, target to resources while that advantages success major we mid-term shareholder, a engines. support at the and summary, parallel, until to building continue more In ends our Yaron? exploring play own and can to as just importantly, targeting the quarter. that technology. new That to highlight from such maintaining these activities for we the each competitive in the benefit review. successes hope potential activities have and will are our tech Yaron in addition its coming partnerships major over establish my its in financial We now

the have subsidiary, maintain Thank equivalents financial appropriated in cash, for its million million We XX, provide you, consolidated will debts. and financial marketable approximately with solid of Evogene’s to $XX I Ofer. securities consolidated is Approximately bank activities as summary. to do Evogene a now September $XX XXXX. Lavie cash position Bio. continues not of cash its any

in of million value was from the the year, included the and in balance XXXX, decrease of To-date Bio. million, consolidated securities million, quarter burn from $X.X Lavie on Evogene’s consolidated or nine sheet. $XX.X third exchange cash first cash which of impact approximately our the was $X.X the approximately the During $X.X excluding marketable million, foreign usage market months

$XX cash be the excluding range million of expect the from consolidated year marketable to million. exchange in in value full securities, rate $XX our the For from XXXX, change we foreign differences the of burn impact market and to

for I primarily Revenues year specific in comparison our R&D previous period of We recognized Bio’s of year. budget. its main and million ongoing hope for are in same XXXX XXXX, $X.X received, one to X $X.X on our collaboration were the color in year. trial. $X.X in and $X.X the product was activities February inoculant next the Lavie for same net quarter previous $X.X aiming previous million, and comparison expenses quarter, in year. in to provide for the in of The agreement cash same of the in you same third quarter for loss the in previous year. the the revenues was were a expenses with call the The XXXX, of period which the building the commercialization the R&D comparison to supporting the in comparison to Biomica’s was expenses were approximately previous production in previous of to XXXX now loss comparison the and of period reduce to Phase $X.X to in period the per quarter due of quarter highlight to loss the loss We non-refundable $X.X year. net in net same conference XXXX items million third reported G&A in P&L. of the period $X third million our the development the operating Operating million, in in same in were burn contributors quarter would an in to Business million of were $XXX,XXX $XXX,XXX, subsidiaries. million, to million the are of million like million some expenses third to $X.X grants period more third the are in the XXXX. $X comparison currently

like plan to are subsidiaries strengthen that, both cash business well ensuring capitalized. call may Ofer I for strategies have. any Operator? consolidated position, mentioned, you With As to pursue and Ofer our questions open Evogene’s would to now the our is

[Operator time, Instructions]. Thank you. session. begin gentlemen, this at we will Ladies and a question-and-answer

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

everybody. Hi. Thanks question. Good Good afternoon, morning. my for taking

your subsidiaries fundraising, could cash in whether partnership speak I more years? other if in or some you near-term to please that's could you or balance think business you And elaborate through which there be non-dilutive for are two changing opportunities particular What now specifically order for extend could you items? first had the is on plan. So your deprioritizing to one

Kristen. I Hi, addressing is of the your part second This Ofer. by question. start will

one in positioned additional So fundraising the expecting the I fundraising. that probably another I or companies term, road believe the better for two But be that Biomica. for think will on companies next year, of short is I'm

I I the $XX amount. the fundraising think the target a well. also as we'll that Canonic should amount should for we money AgPlenus for that raise we start raised And of million, higher but of process [indiscernible] or the think

company in fundraising. that So non-dilutive is for to put on Biomica, the such initiate I Canonic, and actually respect respect short is with This the And they're think good interesting, and mid-term of biofuel. increased should fundraising. mentioned of again a least term, castor With there the process position in also will lately, emphasis forward became with as I also two more too AgPlenus and I Lavie Casterra at Bio it. companies as of and but to here the here, [indiscernible] field other a to area in demand very beans move

first remember the we I was we remind plan, initiative can activity -- to according that, me are benefit all are The that activity to What that reduce? technology. remember, to related are our new our if business question is you we think it? was activity, looking reduce with more -- probably that going a new planning respect can as you you what the to So for a from time

relevant technology new probably that the the something activity. of which this activity, and So reduce forms business maybe level developing will for be development of we is would significantly meaning

on will this probably mainly put focus existing and put on are and our activity going we So we hold them further. is to

is is an protein. is probably additional will small have As it extend that replace a put this example on in resources conduct plants to in we we'll activity. activity Evogene. until protein we probably financial example, an focusing on hold we past, have reducing to This the an now our ag But the activity

probably on So Bio as are about varieties, the focus main to we to what launched I level, the be some the and we're not The in until we Canonic, we companies and research the quite I that to commercial now going have when some not to next that of reason quite hope already some it. is such you're that and of build and quarter. are more very product revenue going or we Lavie promising we we reduce increase the are able but of amazing them with as to an Biomica this the activity. we talking update on a AgPlenus, also example, will succeeded effect budget for see can is happy very, launch going

to there THC develop, be we for products current So the there on from variety focusing what market more is a have a focusing demand product of the cannabis nice to which clear trying will shift we develop product on a collection R&D already more a nice high and already and and aspects already medical available. of in the for activity variety,

are what is the then and addressed going aspects. I commercial to we do, this hope some focusing R&D question. on So your aspects more that

And update we'll then on us give it get this this Yes, time? XXXX in targeting you primarily think safety at a Ofer. are can some do does. see conference Thank we in could the you focus or some spring you, medical what present to you to then for spring? to And expect Biomica? context as into early going the at efficacy signals clues to Is

example, will in a results. very that positive conferences a what trial participating conference And important With XXXX, as clinical reason in focusing in the are going respect And we're Elran the participated and event. the in expecting different I is present going safety. we it an not yes, this on call, received he in from panel. actually and in I'm feedback because a to we very So, this is participate publish to to is spring Boston

feedback the you we that we some that the move in already positive third disclose receive third, automatically patients. are we shape, otherwise, after but to and the hopefully, we we move indication be about to And course, to a good see won't are recruit additional can safety, nine things able to of patient. So, the can will going information from the second

Please the so never this know respect all you if think what we shape. But on. to indication good in to efficacy, see And of going -- are course now safety, until I that you definitely to again, we're that, is think least focus are have we going at for we results. from all disclose the efficacy, this suffering we already to are treatment but They all And information. this with [indiscernible] them. time they that another cancer. that that of we're now remember it help received cycle recruiting this our going microbe. with are one entering for of patients they’re into [indiscernible], some treatment until I experiment, didn't So With

we us going So are very see make lot positive some if to a have to going it's effects, meaning of excited. really very, and

for not the very It's with XX. are number only we public. to this, we're share So some going do indication But targeting information patients will of we the course, this if this relatively because like of is small.

And the Thanks. each doing forward talk a Okay. the of little for financial could moving work for requirements you me about question resource subsidiaries? the last bit to if more is, that you're understand

'XX. to of their And the financial it term we at established, one that a forward, CEO -- I this period good will can’t in also our to the challenging that during money this that definitely disclose short the we our financial believe raise as for subsidiaries, this. XXXX. activity confident keeping I a that we to mid-term. activity some at materialize, with have able the required year. big that But least also a I I we need. all on currently ability our will support more send disclose is aware I be should And activity. said, will think the in will can't think our smile And that we of each message hope this building are our next And budget. but much, subsidiaries are we or Each clear I are I plan be if shape. moving fact all already of our the and that I this building on to based a for establishing And are the plan we according And fund think of So And plan than target 'XX environment. we we maybe is in

again. thanks Great,

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

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

Yes. Thank you. you to the on you all joining in I look again. Thank Thank progress for today. call. our once updating next call our you forward

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

You may go ahead and disconnect.