EVGN

Image source: The Motley Fool. Tuesday, Aug. 18, 2026 at 9:00 a.m. ET Chairman of the Board of Directors - Nir Nimrodi President and CEO - Ofer Haviv VP Finance - Polina Ravzin Operator: Welcome to Evogene's Second Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded on August 18, 2026. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events, and Evogene Ltd. may, from time to time, make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA and other securities laws as amended. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, planned, estimated, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discuss our value drivers, commercialization efforts and timing, product development and launches, estimated market size and milestones, pipeline as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance. Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this presentation. Therefore, actual future results, performance or achievements and trends in the future may differ materially from what is expected or implied by such forward-looking statements due to a variety of factors, many of which are beyond our control, including, without limitation, the aftermath of the recent war between Israel and each of the terrorist groups, Hamas and Hezbollah and Iran and other regional terrorist groups supported by Iran and any destabilization in Israel, neighboring territories or the Middle East region and those described in greater detail in Evogene's annual report on Form 20-F and in other information Evogene files and furnished with the Israel Securities authorities and the U.S. Securities and Exchange Commission, including those factors under the heading Risk Factors. Except as required by applicable securities laws, we disclaim any obligation or commitment to update any information contained in this presentation or publicly release the results of any revisions to any statements that may be made to reflect future events or development or changes in expectations, estimates, projections and assumptions. The information contained herein does not constitute a prospectus or other offering document nor does it constitute or form part of any invitation or offer to sell or any solicitation of any invitation or offer to purchase or subscribe for any securities of Evogene or the company, nor shall the information or any part of it or the fact of its distribution form the basis of or be relied on in connection with any action, contract, commitment or relating thereto or to the securities of Evogene or the company. The trademarks include herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services. With us on the line will be Nir Nimrodi, Evogene's Chairman of the Board of Directors; Ofer Haviv, President and CEO of Evogene; and Polina Ravzin, VP Finance of Evogene. Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead. Ofer Haviv: Thank you for joining Evogene's Second Quarter 2026 Analyst Call. Today's call will be somewhat different from our usual format. Joining me is Mr. Nir Nimrodi, Chairman of Evogene's Board of Directors. Nir will begin by presenting the Board's response to the recent demand by a group of dissident shareholders seeking to replace the company's Board. Following Nir's remarks, I will discuss the company's achievement during the first half of the year and our near-term expectation. We will conclude with review by Mrs. Polina Ravzin, Evogene's VP Finance, of our financial results, followed by a Q&A session. Nir. Please go ahead. Nir Nimrodi: Thank you, Ofer. Good morning, everyone. As Chairman, my primary responsibility together with my fellow directors, is to position Evogene for long-term sustainable value creation. We share the frustration with the historical share price, and we acted with urgency and determination to address it. Over the past 18 months, we haven't just talked about change, we have delivered it. We have fundamentally transformed Evogene into a lean, AI-driven leader in computational chemistry for pharmaceuticals and crop protection. We have streamlined operations, reduced costs and optimized our portfolio. The question today is not whether change is necessary as change has already been executed. The question is how we accelerate the momentum we have created. Interrupting this transformation precisely as it enters its most promising phase is a risk we cannot afford. Our strategy is already delivering tangible results. We established ChemPass as our core platform, building the first-in-class generative small molecule foundation model and integrating the autonomous AI agents in partnership with Google Cloud. We secured 6 key drug development agreements with leading biotechnology companies and premier academic institutions, validating the commercial value of our AI-driven platform, ChemPass AI. We reduced headcount from 117 to 38, creating a highly focused agile organization. We lowered cash burn from approximately $20.5 million in 2024 to an expected $8.5 million to $9.5 million in 2026 with further reductions anticipated in 2027. We raised approximately $11.1 million in new capital, securing the financial runway to execute our plans. And lastly, we monetized Lavie Bio, selling it to ICL for $15.25 million, licensed Biomica Phase I asset to Lishan Biotech, focused Casterra on the Brazil SAF market and advanced AgPlenus novel fungicides discovery. Another strong indication of the confidence in Evogene's long-term potential comes from Mr. Leon Recanati, a member of Evogene's Board of Directors and a highly respected investor. Mr. Recanati recently made a significant investment in Evogene and today, he is one of the largest shareholders of the company. This recent investment reflects his strong belief in Evogene's strategy, technology and long-term value creation potential. His commitment demonstrates the confidence he has in the substantial potential of the company and further aligns his interest with those of all other Evogene shareholders. As you may know, we were presented with the demand by a group of dissident investors who are seeking to replace the entire Board. Following this recent demand, we approached them openly and in good faith and engaged in a dialogue with them to understand their vision for Evogene. We even offered to collaborate and add representatives of their choosing to our Board. They rejected that proposal. More importantly, to date, this group has failed to present any comprehensive strategic alternative commercial road map or credible operating plan. Let me be clear, replacing most of a public technology company board is an extremely consequential decision. It should only be considered when there is a superior fully articulated road map on the table. Changing directors is not a strategy, it's a disruption. A vote for this group is a vote to hand the reins of your investment to individuals with no defined plan. The risks dismantling the very momentum that derives our value creation today. While we believe in continuity, we also believe in evolution. This September, assuming that we prevail in the contested election, we will proactively strengthen our board by adding 2 highly accomplished industry leaders: Dr. Yael Margolin, pharmaceutical innovation and commercialization expert; and Mr. Yoshinori Oikawa, a veteran of International Biotechnology. These additions ensure our Board has the precise world-class expertise required for our next phase of growth, combining fresh perspectives with critical institutional knowledge. This upcoming vote is not about resisting change. On the contrary, it's about enhancing the future we are actively building. Removing a unified Board at this critical juncture would destroy the strategic plan we have been implementing and would be a profound disservice to our shareholders. On a personal note, I want to emphasize that I deeply believe in open dialogue and constructive collaboration. My door is always open to all our shareholders. If you have thoughts, feedback or wish to discuss our path forward directly, I'm always ready and happy to listen. Our focus is singular, to ensure Evogene reaches its full potential and delivers the value you deserve. We ask for your continued trust and your support for the current Board and its enhanced slate of nominees, including the new board members nominees, Dr. Margolin and Mr. Oikawa in the coming vote. Thank you. Ofer, back to you. Ofer Haviv: Thank you, Nir. I would like to echo Nir's comments. Our sharp strategic focus and streamlined organizational structure are already yielding outstanding operational results. First, turning to our Pharma division. Since the beginning of this year, we have signed 4 new drug development agreements. This brings our total active collaboration to 6, as Nir noted earlier. I am highly encouraged to report that for 2 of these collaborations, we have already successfully completed the initial step, Hit ID of our computational platform, ChemPass AI process. The validation results we achieved exceeded our partners' expectations, and we are now actively promoting the next steps of these joint programs. In addition, we are rapidly advancing our internal drug discovery program which not only holds significant value, but also serves as a powerful ongoing validation of our computational platform. In this program, we successfully completed step 2, Hit to Lead of the ChemPass AI process and progressed to step 3 lead optimization, the generation of unique proprietary molecules that will serve as a drug candidate to initiate preclinical trials. It is important to emphasize that all of these collaborations and internal programs target therapeutics areas, addressing markets with multibillion-dollar commercial potential. Importantly, Evogene retains significant commercial rights in the outputs of these joint activities. We anticipate generating revenues as these molecules advance through the development pipeline. Every new partnership we secured and every development milestone we achieved brings our programs closer to commercialization, increasing the value and expanding Evogene's future revenue potential. In addition, we are seeing similar highly encouraging momentum in our Ag division, specifically in our crop protection program. We have made substantial progress in our program to develop a novel fungicide targeting Septoria. We are nearing the completion of step 3 Lead Optimization of the ChemPass AI process, and we are currently testing synthesized molecules in advanced biological assays ahead of launching greenhouse and field trials. None of this would be possible without the continuous exceptional growth of our core computational platform, which underwent a massive upgrade this year. Following the signing of our second agreement with Google Cloud, we have already reached our first major project milestone. As a result, we have integrated advanced AI agents into our workflow. These agents automate highly complex, time-consuming tasks that previously required highly specialized researchers weeks or months to complete. Today, we execute those tasks in a matter of minutes. We have also added powerful new predictive models that identify winning candidate molecules. A key example is our recently announced APP, antifungal potency predictor model, which predicts a molecule's activity within the actual pathogen itself rather than just its interaction with the target protein. Furthermore, the size of our virtual chemical space has expanded dramatically from 36 billion molecules to 110 billion molecules that we can now rapidly scan. Looking ahead, we continue to be laser-focused on achieving the following key objectives: Progressing our existing research collaboration programs across both our pharma and agriculture pipelines; securing new drug development collaborations with other leading biotechnology companies while simultaneously initiating discussions with major pharmaceutical companies for joint activities; advancing our high-value internal programs in both pharma and crop protection, which present tremendous commercial upside for our shareholders; establishing strategic partnership with top-tier global ag chemical companies; continuously upgrading our computational technology advancing towards increasing autonomous computational system designed to predict key success requirements at the early stage of development. To conclude, I want to strongly reinforce Nir's message. The transformation of Evogene is not distant promise. It is happening right now and the execution is undeniable. This level of rapid progress and technological breakthrough is only possible because we have a deeply aligned Board and management team, working with a shared precise vision. I'm absolutely confident that our current Board, strengthened by the world-class expertise of our newly nominated directors, provides the stable, strategic and highly capable leadership needed to maximize the value of our technology and drive this company to the significant commercial success we all anticipate. Now is the time for execution and continuity, not disruption. We strongly ask for your vote to support the current Board and its nominees so we can keep this powerful momentum moving forward. With that, I will hand the discussion over to Polina to review our financial results. Polina Ravzin: Thank you, Ofer. I would like to reinforce the points Nir made regarding the significant transformation Evogene has undergone, particularly the refocusing of our activities and the decisive steps we have taken to implement our new strategy. As you heard from Ofer and his update on our subsidiaries, we have moved quickly to align our operations and resources with our strategic priorities. From a financial perspective, this has meant significantly reducing our operating expenses, preserving and maximizing the cash resources available across the group and focusing our investments on the areas where we believe Evogene can create the greatest long-term value. The second quarter financial results provide an important foundation for the quarters ahead and reflect many of the actions we have already taken to create a more focused, disciplined and financially sustainable organization. I will start with the status of our noncore subsidiaries. Consistent with our revised strategy, we continue to manage the wind down or transition of our noncore business activities in a disciplined manner. Lavie Bio is no longer operational. Under the ICL transaction, 2 additional payments remain due to the company. The first payment was received in July 2026 and the second is expected in July 2027. In addition, during the first quarter of 2026, Lavie Bio received court approval to distribute a $4.25 million dividend to its shareholders, of which Evogene was entitled to approximately $2.9 million. The dividend distribution was completed during the second quarter of 2026. Biomica, following the successful completion of its Phase I clinical trial and the licensing of its lead oncology candidate BMC128 to Lishan Pharmaceuticals, is no longer conducting ongoing operations. In April 2026, Biomica received court approval to distribute a $2.7 million dividend to its shareholders, of which Evogene was entitled to approximately $1.35 million. The dividend distribution was completed during the second quarter of 2026. Casterra has significantly reduced and realigned its operations and is now focused exclusively on Brazil. Evogene raised approximately $0.8 million through its ATM program during the second quarter of 2026 and an additional amount of approximately $2.4 million during the third quarter of 2026. Turning now to the financial results. I would like to highlight the key figures for the first half and second quarter of 2026. As of June 30, 2026, Evogene held consolidated cash and cash equivalents of approximately $9.3 million. Consolidated cash usage during the second quarter of 2026 was approximately $2.1 million. For the full year 2026, we expect cash usage to be in the range of approximately $8.5 million to $9.5 million. Managing our cash position remains a key priority, and we are taking disciplined actions to further reduce cash burn while preserving the capabilities needed to execute our strategic priorities and advance our most promising business opportunities. This disciplined approach is already reflected in our results. The second quarter net loss reduced to approximately $1.8 million compared with approximately $4.7 million in the second quarter of 2025 and approximately $6 million in the second quarter of 2024. Revenues for the first half of 2026 totaled approximately $0.7 million compared to approximately $2.9 million in the first half of 2025, a decrease of approximately $2.2 million. The decrease was primarily attributable to lower revenue from Casterra as the first half of 2025 included approximately $2 million in significant castor seed sales. Revenues for the second quarter of 2026 were approximately $0.3 million compared with approximately $0.5 million in the second quarter of 2025. The decrease was primarily attributable to the conclusion of AgPlenus agreement with Bayer in May 2026. Research and development expenses, net of nonrefundable grants for the first half of 2026 were approximately $2.9 million compared with approximately $3.5 million in the corresponding period of 2025, a decrease of approximately $0.6 million. The decrease was primarily attributable to lower R&D expenses at Casterra and AgPlenus, partially offset by increased R&D expenses at Evogene as the company redirected its R&D efforts towards activities that are core to and support the execution of its new strategy. The decrease in R&D expenses was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.4 million. For the second quarter, R&D expenses were approximately $1.4 million compared with approximately $1.7 million in the second quarter of 2025. This decrease is mainly attributable to decreased expenses in Casterra, partially offset by increased expenses in Evogene, as mentioned above. In addition, the decrease was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.2 million. Sales and marketing expenses for the first half of 2026 were approximately $0.7 million, essentially unchanged from the corresponding period of 2025. For the second quarter, sales and marketing expenses were approximately $0.3 million compared with approximately $0.4 million in the second quarter of 2025. General and administrative expenses for the first half of 2026 decreased slightly to approximately $2 million compared with approximately $2.1 million in the corresponding period of 2025. The decrease in G&A expenses at Evogene and its subsidiaries were substantially offset by approximately $0.2 million of transaction costs related to the warrant inducement transaction and other legal expenses as well as approximately $0.2 million resulting from exchange rate fluctuations between the U.S. dollar and the NIS. For the second quarter of 2026, G&A expenses were approximately $0.9 million compared with approximately $1 million in the corresponding period of 2025. For the first half of 2026, financing expenses net were approximately $1.7 million compared with financing income net of approximately $0.8 million in the corresponding period of 2025. This change was primarily related to the accounting treatment and revaluation of warrants, including warrants issued in August 2024 fundraising and the February 2026 warrant inducement transaction. Importantly, these results include significant noncash accounting impacts. In connection with the February 2026 warrant inducement transaction, the company recorded financial expenses of approximately $3.8 million during the first half of 2026 while also recorded approximately $2.1 million of financing income related to the fair valuation of the warrant liability as of June 30, 2026. For the second quarter of 2026, we recorded financing income net of approximately $1 million compared to financing expenses net of approximately $0.3 million in the second quarter of 2025. The improvement was primarily related to the warrant accounting and revaluation of the warrant liability as described above. Loss from discontinued operations net for the first half of 2026 was approximately $0.5 million compared to approximately $3.6 million in the corresponding period of 2025. For the second quarter of 2026, loss from discontinued operations was approximately $0.2 million compared with approximately $1.7 million in the second quarter of 2025. This amount primarily reflect the financial results of Lavie Bio and Biomica as well as expenses related to the development and maintenance of MicroBoost AI for ag, which are presented as a single line item in our consolidated statements of profit and loss. Following the sale of the majority of Lavie Bio's assets as well as Evogene's MicroBoost AI for ag to ICL in July 2025 and the licensing of BMC128 to Lishan Pharmaceuticals in February 2026, the operating expenses levels associated with Lavie Bio and Biomica have decreased significantly. Finally, our net loss for the first half of 2026 was approximately $7.7 million, essentially unchanged from the corresponding period of 2025. However, the second quarter results show significant improvement. Net loss for the second quarter of 2026 was approximately $1.8 million compared to approximately $4.7 million in the second quarter of 2025, an improvement of approximately $2.9 million or nearly 62%. This improvement was primarily driven by lower operating expenses, a significantly lower loss from discontinued operations and higher financing income net. And with that, I have concluded my review of the second quarter financial results, and I will now hand the call back to Ofer. Ofer Haviv: Thank you, Polina. Let me close by emphasizing one important point. The transformation Nir described is not simply a strategic vision, it is already reflected in the way we operate and in our financial performance. We have taken decisive steps to streamline the company, substantially reduce activities in noncore business, lower our operating expenses and deploy our capital with greater discipline. At the same time, we have protected the technological capabilities and strategic flexibility that we believe are essential to advancing Evogene's most promising operations and creating long-term value. The actions we have taken during 2025 and the first half of 2026 have created a stronger and more disciplined financial foundation for the company. We are entering the second half of the year with a clear focus, a leaner organization and a much more capital-efficient operating model. Most importantly, we believe this puts Evogene in a stronger position to execute with greater focus, greater discipline and greater ability to convert our technology and innovation into meaningful commercial opportunities. With that, I would like to thank for your joining us today. We are now happy to open the call for your questions. Operator: [Operator Instructions] The first question, when was the last time you used the ATM? I noticed that the number of outstanding shares increased by approximately 2.5 million. Ofer Haviv: This is Ofer answering this question. So we are using the ATM cautiously. And according to the market condition, we decide when to use it or not. This is part of our strategy to raise money, and we found it's probably the most efficient and less expensive way to raise money. And we usually report on how we utilize the ATM on our -- every 6 months in our regular reporting system. And I'm sure that all of the information as usual, will be available in this report. Operator: The next question, can you monetize your IP technologies with a major strategic partner in the near term, whether that would be a technology partner, Google, et cetera, one of our subsidiaries or the ChemPass engine? Ofer Haviv: So our -- when we are evaluating our technology and we did so. So we look at all the companies that are focusing on small molecule discovery for pharma and for the ag. In the ag, there are not many, if at all. I think that Evogene is one of the major companies in this field. In the pharma, there are additional companies in the same area of activity. And then we can divide them to huge company which usually they are working on their own pipeline and less in the favor of other companies. There is a small company competing with what Evogene is doing. I think that the fact that actually Evogene is entering into this field after many, many years of experience in how to use technology to address chemical and biology challenges, I think puts us in a very strong position. And the fact is that even though we have opened our activity in this area less than a year, we already have 6 collaboration agreements, and we are now talking with an additional company on additional collaboration. And what I'm very excited to see is that we are now starting to cooperate with a pharma company who is starting to see initial interest in our technology and what we can offer them. And the last is that today when we're talking with on additional [indiscernible] in the majority of our ongoing discussion, we are also talking about R&D fee to fund our activity. This is something that we haven't done at the beginning of our activity in this field. And I believe that it will also be reflected in our future revenue item, which makes me very excited and feeling that we are really offering something unique. And usually, I don't think that it's common to make comparison to other companies, but I feel that we are in a very, very good place in the field of small molecule discovery, targeting a specific protein. Operator: The next question, how long do you expect the field trial to take for the Septoria agricultural program? Ofer Haviv: So currently, we still didn't initiate on the new target that we are focusing the field trial. We are now in the stage of validating our most promising molecules or [indiscernible] with the [indiscernible]. And the next step will be at greenhouses. I'm really excited from where we are today because the concentration of the small molecules that we are evaluating now, it's very, very low, which is very, very important. And we saw very strong response when it was tested on fungi level. And I really hope to start to see the indication also [indiscernible], which is the next step of our focus. And this is the step when we are going to approach all the big chemical companies. And the fact that we are focusing on Septoria is not just a coincidence. Septoria is one of the main fungi that all the big companies are looking for a solution for because what existed the market the fungi already developed resistance. And everybody today is looking for new mode of action. This is the protein that we are focusing on. And of course, the [indiscernible] chemistry that is working on this specific mode of action. And I think this is what we are -- we have now in our hands. So I'm really looking to see what we can build commercially around this program when we start to present those results to the world's leading ag chemical companies. Operator: The next question, when do you expect EVGR510 to enter the clinic? Ofer Haviv: So I don't have in front of me the table, but in the near future, we are more focusing on entering into the preclinical trials. This is something that is a more closer milestone. And I really hope that in some of our program in the second half of next year, something that this would be reasonable to expect at least in the first program that we initiate. I think that in my speech, I shared that we are very, very excited to see that 2 from our 6 ongoing program already moved from step 1 to step 2 in our workflow scheme with a very, very promising result that was better than what we expected, including our partners. And we also are nicely advancing in our internal pipeline, which we finished step 2 and now we are moving to step 3 and assuming we'll end step 3 during next year, then we can start to talk about moving into the preclinical trial. The minute that Evogene will move to the stage of preclinical trial company, I think this will be an inflection point that I hope and expect that it will also have effect on our company valuation and perception in the pharma industry. Operator: The next question, when does management plan to use an IR approach to bring investor outreach to new existing shareholders? In my opinion, management has shot itself in the foot by pigeonholing yourself to your single banker. I would like the C-suite and others to do NDR across U.S. as IMO ChemPass AI is worth multiples of the market cap today. But due to ATMs and structural investors, our shares have been held hostage. Let's change our ways and bring the true value out. Ofer Haviv: Honestly, I really -- I definitely agree to almost everything that was stated in this question. I think that we definitely need to expose Evogene to a much broader audience. I think that we need to meet with new investors and existing investors to tell the Evogene story. So why we haven't done it until now if it's so clear. We are now in the position that if somebody told me a year ago that we will achieve all what we achieved already, I thought that maybe it's too good to be true because we started the new -- significant shift in our strategy 1.5 years ago. So 1.5 years ago, what we can tell to the industry is just the expectation, what we are planning to do and what might happen. 1.5 years later, the reality is now -- our expectation, our plan became the reality. And now I feel very, very comfortable to start to meet with investors and with family offices and with the financial institutions and tell them not just the Evogene story, but also to show them the results and the list of the collaboration that we signed on and this list is going to increase. And I think -- I feel that we have today now not just the story, we have the reality that support our story. And this is now the time to start to meet with investors. In June -- at the end of June, I participated in a conference in San Diego, and we met with pharma companies and small biotech companies. And it was the first time that when we tell the Evogene story, all the results that we achieved and when we show the numbers from the program that finished step 1 and I see the reaction on the face of people when we show them the number of molecules that show positive results, this is where I felt that now we have what we need in order to make the difference when I'm meeting with investors. And I'm looking forward to finish the summer vacation and immediately to work with more than one investment banker, work with the IR firm and really to start to meet with potential investors and make sure that the audience of what Evogene will increase. And when the results will come more and more frequently, I believe that it will also be reflected in our share price. So I have a strong belief that, yes, we need to be more out there, and we are now in the process to do so. Operator: The next question, how long does the Hit-to-Lead stage of development typically take? Ofer Haviv: So the computation part, it shouldn't take too long. It's something around like 2 to 3 months. But before we are moving to step 2, which this is a Hit-to-Lead, this is the name of the second step, we are -- our partners -- or inside of Evogene, we order -- predict small molecules according to our computational analysis and then we validate them in wet assay. And by doing so, we confirm the prediction, and we're using all of this information before we start the second computational round of analysis. What really takes more time is to order the small [indiscernible], the time until they came to the lab and the assay itself. This might take another few months. So in total, it might take something between like 4 to 5 months in order to see the results. When you are working with academic institution, it might take a bit longer because usually academic institution, they are having to do everything a little bit slower than what you expect. When you are working with a commercial partner, things are moving much faster. And when you are doing it by ourselves, so this is when you see the fastest evolution in the program. And as example, even though that we initiate our internal program after we already work -- we get 2 maybe even 3 collaboration agreements, the program that is the most advanced and now we initiate Phase III is the internal program because we are moving much faster than academic institutions and some of our partners. So to summarize the answer to the question, it's between 4 to 5 months. It could be shorter if we are doing it internally. It might take longer if it's an academic institution, but this is the range. Operator: The next question, I'm a shareholder for a long time. Why the price drops down so much till now, you have to do something to solve it. Nir Nimrodi: I'll take it. This is Nir. Thanks for the question. I'm also a shareholder, and I also share the frustration. We've done a very thorough strategic analysis of all of our assets already 1.5 years ago when I joined as Chairman. I've spent personally a lot of time and with my fellow Board members and the management team, we have decided to focus on -- very carefully, but very intently on ChemPass. We feel that there is a differentiated asset that no one else has. Ofer was careful to say that, but I will say that after dozens of meetings with potential partners. It's a differentiated asset, and we believe that we will be able to evolve the 6 current collaborations into tangible products down the road that would be monetized. And we believe that even before these products evolve into preclinical and clinical studies, we will cement additional collaborations, hopefully, with larger companies, some of which are already spending significant amounts and resources on the use of AI for large molecules as well as small molecules. And we do believe that we have the data to show them -- to demonstrate the differentiated value of the product. But having said that, what would be the impact on the share price, if at all, and how soon is not something I can comment on nor I'm willing to predict. But we believe the value will be there. It will be demonstrated very clearly. It will become tangible not only in our eyes, but also in the eyes of our partners and a growing list of them. And eventually, that would result in an increase of the share price. I also want to echo what Ofer said and repeat some of what I said. We're not just focusing on building value. We're also focusing on running a leaner, more agile and more operationally focused organization. Again, the organization today is about 1/4 in its size and even less so in terms of the burn. This is being done to preserve our runway and to be able to actually demonstrate this value. So again, all in all, we share the frustration, and we were acting very diligently to correct it. Operator: The next question, is there any kind of plan to see if the Biomica candidates can be reduced to a single strain and still retain most activity. The difference is huge in the regulatory world. I am talking about the difference between full drug path versus a dietary supplement. Ofer Haviv: So first, it's important move to emphasize that we start from our strategy to focus the company activity on small molecule discovery. So we reduced the level of Biomica activity significantly starting from 2025, and we were mainly focusing on a BMC128, which is what our lead candidate for cancer. And we finished Phase I successfully in the first quarter of 2026, and we also have initial positive result that makes us very, very excited. But because we were short in budget and because of our decision to focus on small molecules and not on microbes, we decided strategically to look for a partner that we can license those assets too, and we choose to work with a Chinese company that are focusing specifically on the area of drug based on immune microbiome, which this industry is supported nicely at China, which is one of the leading companies in the biotech arena worldwide. And they are advancing the microbes forward. No doubt that if we will move from 4 microbes to 1 microbe, it will change significantly the regulation hurdle, but the reason that we choose these 4 is because we felt that the total effect of all 4 together is quite important because each one of the microbes is operated on a different mechanism. And altogether, it serves the maximum effect that we were looking for. I think this is what also reflected in the results that we received. And what was also very nice is what we saw is that the clinical indication supports the prediction on how those microbes are going to affect our body. So we are in direct contact with Lishan. Actually, today, we had a Board meeting of Biomica that I'm today leading these Board meetings, and we talk with our colleagues in China. And they are now starting validation of those consortium of microbes. They also validate each one of them separately. But now they are the one that are leading the commercial -- the research and the commercial process of these microbes. Of course, if they will come to the conclusion that you can reduce the number of microbes, it's something that we'll definitely be more than happy to do. Maybe the last thing I want to add is that when you're talking about building an IP position, when you have a combination of microbes, it puts you in a much stronger IP position rather than only 1 microbe. So maybe another reason to have a product based on 2, 3 microbes is also from IP reason. I hope that I addressed this question. If not, I will be more happy to do it offline. Operator: The next question, can you add the value for Evogene in the Verb Biotics and Finally Foods? Those 2 items are really under disclosed compared to the relatively short term. Ofer Haviv: So with respect to Finally Foods, it's one our subsidiary. We're holding this company more than 30% equity. I hope that this is correct because the company raised some money lately. The company is focusing on [indiscernible] casein, which is a protein existing in milk in potato. The whole concept was developed in Evogene and the researcher that was leading the program, they moved to -- at the beginning, it was part of The Kitchen Hub. They established a company and the company name [indiscernible]. I'm giving this information so I'm not sure that everybody in the call knows about this activity. All of the wet lab or the majority of the wet lab conduct by the company was taking place in Evogene facility, Evogene lab. And now the majority of the greenhouse activity is taking place in Evogene farm. And the company has a very nice and promising results, and we are very excited about it. Due to our decision to focus on small molecules, we are not planning to invest directly in this company. I'm a Board member in this company. We are the major shareholder. But of course, if we come to the conclusion that from a financial perspective, it makes sense to keep our holding in this company. So in future, we will consider to participate. But at least for now, it's not part of our core strategy. But you can imagine that I'm more than excited and pleased to see the progress of this company moving forward with the idea of producing casein protein and other proteins that usually exist in milk in potato. And they had a very nice result based on the last update I received from them. Operator: The next question, the APH1 and the APTH1, is this program dead? Or is it possible to license it to someone like ADAMA or Syngenta. Ofer Haviv: ADAMA or Syngenta. So APTH1 is a protein that was protein that we were focusing on for herbicides. We stopped -- and we have the collaboration that was built with Bayer. And we announced that we stopped this collaboration in the first half of this year, and there is a good news and a bad news related to this announcement. I will start with the bad news. The bad news was that it turned out that the protein itself even when w stop its activity, so a big -- and the idea was to develop an herbicide weed killer, okay? So it turned out that when we stop the protein activity, the weed at the beginning showed that they are getting weak and it looks like they are going to die. But after a while, they somehow recover. The understanding is that this specific protein is not essential enough in order to kill the weed. And this is something that our partners saw only in very advanced stage. And the perception was that the molecule that we discovered, they were doing the job -- they were doing what we were expecting from them. They stopped the protein activity. This was the main expectation from Evogene to find the molecules that are going to stop the protein activity. The problem wasn't the molecule. The problem was the protein itself, the protein that we were supposed to stop its activity was not [indiscernible] enough to the existing of the weed, and this is why both Bayer and Evogene decided to stop focusing on this target. So I'm not sure that we will succeed to generate enough interest with other partners with respect to this specific protein. The good news came from this work is that I think that Bayer felt very positive and pleased from the Evogene work in this project because as I said, our target was to find the right small molecules that are going to bind to this protein and target activity and we succeed in doing so. And this is how [indiscernible] partly exposed, the protein is not essential enough to kill the weed. So my belief and expectation is that this positive impression on Evogene technology, I hope that it will lead to new discussion with Bayer for new programs, new projects. And I believe that there is more to come in respect of the relationship between the 2 companies. I can't disclose much, but I really hope that the good impression, the great atmosphere between the 2 teams will be translated into expanding and continuation of the commercial relationship between the 2 parties. Operator: There are no further questions at this time. Mr. Haviv , would you like to make a concluding statement? Ofer Haviv: Yes. I would like to thank everybody that participated in this analyst call. We highly appreciate the time. I think the company is in a really great position to progress and prosper. We are in the right space, small molecules in pharma. It's a huge, huge space. I believe it's exactly the same in the ag industry. And I'm looking forward to continue to update you in future analyst calls on additional achievements. And if you have any additional questions that maybe I didn't [indiscernible] to address in this call, don't hesitate to call me. I will be available to any additional questions. And I will be also very happy if needed to meet face-to-face to elaborate more about the company. Thank you very much, and enjoy the rest of the week. Operator: Thank you. This concludes Evogene's Second Quarter 2026 Results Conference Call. Thank you for your participation. You may go ahead and disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management has fundamentally restructured Evogene into a lean, AI-driven organization focused on computational chemistry for pharmaceuticals and crop protection. The company reduced its headcount from 117 to 38 and lowered its annual cash burn from approximately $20.5 million in 2024 to an expected $8.5 million to $9.5 million in 2026. Strategic monetization of non-core assets included selling Lavie Bio to ICL for $15.25 million and licensing Biomica's Phase I oncology asset to Lishan Biotech. The core ChemPass AI platform was significantly upgraded through a Google Cloud partnership, expanding the virtual chemical space from 36 billion to 110 billion molecules. Operational momentum is evidenced by securing 6 active drug development collaborations, with two programs already successfully completing the Hit Identification stage. Management is actively opposing a dissident shareholder group's attempt to replace the Board, arguing that such a disruption would jeopardize the current strategic momentum. The company expects further reductions in cash burn in 2027 as it continues to optimize its lean operating model. Management aims to transition from a computational platform provider to a preclinical trial-stage company, which they view as a major valuation inflection point. Future revenue growth is expected to be driven by R&D fees from new partnerships and milestone payments as molecules advance through development pipelines. Strategic focus for the second half of 2026 includes initiating discussions with major pharmaceutical companies and advancing internal crop protection programs toward greenhouse trials. The company plans to expand investor outreach and IR efforts now that the strategic shift has produced tangible validation results rather than just theoretical plans. Second quarter net loss improved by nearly 62% year-over-year to $1.8 million, driven by lower operating expenses and reduced losses from discontinued operations. The company recorded a $3.8 million financial expense related to a warrant inducement transaction in February 2026, offset by $2.1 million in financing income from warrant revaluation. Revenues decreased to $0.3 million in Q2 2026, primarily due to the conclusion of the AgPlenus agreement with Bayer in May 2026. Management highlighted regional geopolitical instability in Israel and the Middle East as a significant ongoing risk factor for operations. Management believes Evogene is a leader in small molecule discovery for agriculture and is gaining traction in pharma with 6 active collaborations. Recent discussions have shifted toward including R&D fees to fund activities, a change from earlier agreements that management expects will boost future revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The program is currently validating molecules at low concentrations in biological assays, with greenhouse trials as the next step before approaching global ag-chemical partners. The focus on Septoria addresses a high-demand market where existing solutions face significant fungal resistance. Management expects to initiate preclinical trials for the most advanced internal programs in the second half of next year. Internal programs are moving faster than academic collaborations, with the internal pipeline already progressing to Step 3 (Lead Optimization). Management acknowledged the need for broader investor exposure and plans to engage with new investment bankers and IR firms following the summer period. The Chairman emphasized that the lean organizational structure and 75% reduction in headcount were necessary steps to preserve runway while proving the AI platform's value. The collaboration ended because the target protein was found to be non-essential for killing weeds, despite Evogene successfully identifying molecules that bound to the protein. Management expects the technical success of the discovery process to lead to new, different project discussions with Bayer in the future.

This article first appeared on GuruFocus. Cash and Cash Equivalents: Approximately $9.3 million as of June 30, 2026. Cash Usage (Q2 2026): Approximately $2.1 million for the second quarter. Full-Year 2026 Cash Usage Guidance: Expected to be in the range of approximately $8.5 million to $9.5 million. Net Loss (Q2 2026): Reduced to approximately $1.8 million, compared with approximately $4.7 million in Q2 2025 and approximately $6 million in Q2 2024. Net Loss (H1 2026): Approximately $7.7 million, essentially unchanged from the corresponding period of 2025. Revenue (H1 2026): Totaled approximately $0.7 million, compared to approximately $2.9 million in H1 2025, a decrease of approximately $2.2 million. Revenue (Q2 2026): Approximately $0.3 million, compared with approximately $0.5 million in Q2 2025. R&D Expenses (H1 2026): Approximately $2.9 million, compared with approximately $3.5 million in H1 2025. R&D Expenses (Q2 2026): Approximately $1.4 million, compared with approximately $1.7 million in Q2 2025. Sales and Marketing Expenses (H1 2026): Approximately $0.7 million, essentially unchanged from H1 2025. Sales and Marketing Expenses (Q2 2026): Approximately $0.3 million, compared with approximately $0.4 million in Q2 2025. General and Administrative Expenses (H1 2026): Decreased slightly to approximately $2 million, compared with approximately $2.1 million in H1 2025. General and Administrative Expenses (Q2 2026): Approximately $0.9 million, compared with approximately $1 million in Q2 2025. Financing Expenses Net (H1 2026): Approximately $1.7 million, compared with financing income net of approximately $0.8 million in H1 2025. Financing Income Net (Q2 2026): Approximately $1 million, compared with financing expenses net of approximately $0.3 million in Q2 2025. Loss from Discontinued Operations (H1 2026): Approximately $0.5 million, compared to approximately $3.6 million in H1 2025. Loss from Discontinued Operations (Q2 2026): Approximately $0.2 million, compared with approximately $1.7 million in Q2 2025. Warning! GuruFocus has detected 7 Warning Signs with EVGN. Is EVGN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evogene Ltd (NASDAQ:EVGN) has significantly reduced its cash burn from approximately $20.5 million in 2024 to an expected $8.5-$9.5 million in 2026, with further reductions anticipated in 2027. The company has secured six key drug development agreements with leading biotech companies and academic institutions, validating the commercial value of its AI-driven platform, ChemPass AI. Evogene Ltd (NASDAQ:EVGN) has made substantial progress in its internal drug discovery program, successfully completing the hit-to-lead stage and advancing to lead optimization, with plans to initiate preclinical trials in the second half of next year. The company's computational platform has undergone a massive upgrade, including the integration of advanced AI agents and the expansion of its virtual chemical space from 36 billion to 110 billion molecules. Evogene Ltd (NASDAQ:EVGN) has successfully monetized non-core assets, including the sale of Lavie Bio to ICL for $15.25 million and the licensing of Biomica's Phase 1 asset to Lishan Biotech, generating additional cash through dividends. The company has reduced its net loss in Q2 2026 by nearly 62% year-over-year, from $4.7 million to $1.8 million, reflecting improved operational efficiency and disciplined cost management. Evogene Ltd (NASDAQ:EVGN) faces a proxy fight with dissident shareholders seeking to replace the entire board, which could disrupt the company's strategic momentum and create uncertainty. The company's revenues decreased significantly in the first half of 2026, totaling approximately $0.7 million compared to $2.9 million in the same period of 2025, primarily due to lower sales from Casterra and the conclusion of the Bayer agreement. Evogene Ltd (NASDAQ:EVGN) has a limited cash position of approximately $9.3 million as of June 30, 2026, which may constrain its ability to fund all planned activities without additional capital raises. The company's APTH1 herbicide program was discontinued after it was discovered that the target protein is not essential enough to kill weeds, despite the successful identification of inhibitory molecules. Evogene Ltd (NASDAQ:EVGN) has not yet initiated field trials for its Septoria fungicide program, and the timeline for commercialization remains uncertain, with greenhouse and field trials still pending. The company's share price has historically underperformed, and management acknowledges the need to improve investor outreach and broaden its audience to unlock the true value of its technology. Q: When does management plan to use an IR approach to bring investor outreach to new and existing shareholders? In my opinion, management has shot itself in the foot by pigeonholing yourself to your single banker. I would like the C-suite and others to do NDR across the US as IMO ChemPass AI is worth multiples of the market cap today, but due to ATMs and structural investors, our shares have been held hostage. Let's change our ways and bring the true value out.A: Ofer Haviv (President and CEO): I definitely agree with almost everything that was said in this question. We need to explore Evogene to a much broader audience. A year and a half ago, we could only tell the market our expectations and plans. Now, our plans have become reality. We have the results, the list of collaborations, and the data to support our story. This is the time to start meeting with investors. At a conference in San Diego in June, I saw the reaction of people when we showed them the numbers from our programs. I am looking forward to working with more than one investment banker and an IR firm to increase our audience. I strongly believe we need to be more out there, and we are now in the process of doing so. Q: I'm a shareholder for a long time. Why has the price dropped so much until now? You have to do something to solve it.A: Nir Nimrodi (Chairman of the Board): I share the frustration. We did a very thorough strategic analysis of all our assets a year and a half ago when I joined as Chairman. We decided to focus very intently on ChemPass. We feel it is a differentiated asset that no one else has. We believe we will evolve the six current collaborations into tangible products that will be monetized. We are also running a leaner, more agile organization, reducing our burn to preserve our runway. We believe the value will be demonstrated very clearly, not only in our eyes, but also in the eyes of our partners. Eventually, that would result in an increase of the share price. Q: Can you monetize your IP technologies with a major strategic partner in the near term, whether that will be a technology partner, Google, etc., one of our subsidiaries or the ChemPass engine?A: Ofer Haviv (President and CEO): We evaluated all companies focusing on small molecule discovery for pharma and ag. In ag, there are not many at all. In pharma, there are additional companies, but Evogene's experience in using computational technology to address chemical and biology challenges puts us in a very strong position. Even though we opened our pipeline less than a year ago, we already have six collaboration agreements and are talking with additional companies. We are now starting to talk with pharma companies who show initial interest. In the majority of our ongoing discussions, we are also talking about R&D fees to fund our activity, which we haven't done at the beginning. I feel we are in a very good place in the field of small molecule discovery. Q: How long do you expect the field trial to take for the Septoria agricultural program?A: Ofer Haviv (President and CEO): We haven't initiated field trials yet. We are now validating our most promising molecules on detached leaves with the pathogen. The next step will be greenhouses. I'm excited because the concentration of the small molecules we have evaluated is very low, which is important, and we saw a very strong response when tested on fungi level. Septoria is one of the main fungi that all the big companies are looking for a solution for because it has developed resistance to existing products. Everyone is looking for a new mode of action, which is the protein we are focusing on. We plan to approach all the big chemical companies with these results. Q: When do you expect EVG R510 to enter the clinic?A: Ofer Haviv (President and CEO): In the near future, we are more focused on entering preclinical trials. I hope that in some of our programs, the second half of next year would be a reasonable expectation for initiating the first program. We are excited that two of our six ongoing programs have already moved from step one to step two with promising results that exceeded our partners' expectations. We are also advancing our internal pipeline, having finished step two and moving to step three. Assuming we end step three during next year, we can start talking about moving into preclinical trials. The minute Evogene moves to the stage of a preclinical trial company, I think this will be an inflection point that will affect our company valuation and perception in the pharma industry. Q: How long does the hit to lead stage of development typically take?A: Ofer Haviv (President and CEO): The computational part shouldn't take too long, around two to three months. But before moving to step two, we order the predicted small molecules and validate them in a wet assay. What really takes more time is ordering the small molecules and the assay itself, which might take another few months. In total, it might take between four to five months to see results. When working with academic institutions, it might take longer. When working with a commercial partner, things move much faster. When doing it internally, we see the fastest progress. Our internal program is the most advanced and has initiated stage three because we move much faster than academic institutions. Q: Is there any kind of plan to see if the Biomica candidates can be reduced to a single strain and still retain most activity? The difference is used in the regulatory world. I am talking about the difference between full drug path versus a dietary supplement.A: Ofer Haviv (President and CEO): It's important to emphasize that we reduced Biomica's activity significantly starting from 2025, focusing mainly on BMC-128, our lead candidate for cancer. We finished Phase 1 successfully in Q1 2026 with initial positive results. Due to budget constraints and our focus on small molecules, we licensed the asset to a Chinese company specializing in microbiome-based drugs. We chose four microbes because each operates on a different mechanism, and together they provide the maximum effect. If we move from four microbes to one, it would change the regulatory hurdle, but the combination provides a much stronger IP position. We are in direct contact with Li Shang, and they are now leading the validation process. If they conclude the number of microbes can be reduced, we would be more than happy to do so. Q: Can you add the value for Evogene in the Verbiotics and Finally Foods? Those two items are really under-disclosed compared to their relatively short-term.A: Ofer Haviv (President and CEO): With respect to For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company continues strategic transformation, initiated in 2025, into a focused, AI-driven computational chemistry company, with significant progress across pharmaceutical and agricultural product development programs Cash burn expected to decline to approximately $8.5–$9.5 million in 2026, compared with approximately $14.4 million in 2025 and approximately $20.5 million in 2024 Second-quarter net loss was reduced to approximately $1.8 million, compared with approximately $4.7 million in the second quarter of 2025 and approximately $6.0 million in the second quarter of 2024 Six active drug development collaborations established with biotechnology companies and leading academic institutions Virtual chemical space expanded to approximately 110 billion molecules, supported by advanced AI models and autonomous AI Agents REHOVOT, Israel, Aug. 18, 2026 /PRNewswire/ -- Evogene Ltd. (NASDAQ: EVGN) (TASE: EVGN), a pioneering company in computational chemistry, specializing in the generative design of small molecules for the pharmaceutical and agricultural industries, today announced its financial results for the first half of 2026 and second quarter ended June 30, 2026, and provided an update on its strategic and operational progress. Strategic Transformation Delivering Measurable Progress Over the past 18 months, Evogene has undergone a significant strategic transformation, focused on establishing the Company as a lean, AI-driven leader in computational chemistry for pharmaceutical and crop protection applications. As part of this transformation, Evogene has significantly streamlined its operations, reduced its workforce from 117 employees in December 2024 to 38 in August 2026, substantially reduced operating expenses, and realigned its portfolio toward activities with significant commercial potential. The Company expects full-year 2026 cash usage to be approximately $8.5 million to $9.5 million, compared with approximately $14.4 million in 2025 and approximately $20.5 million in 2024, with further reductions targeted for 2027. Since the beginning of 2025, Evogene has also raised approximately $11.1 million in new capital, strengthening its financial position and providing additional resources to execute its strategic priorities. Continued Commercial and Technological Momentum Evogene's Pharma division continues to demonstrate strong momentum. Since the beginning of 2026, the Company has entered four new drug development collaborations, bringing the total number of active collaborations to six with biotechnology companies and leading academic institutions. Two of these programs have already completed the initial Hit Identification stage of Evogene's ChemPass AI™ computational discovery process, with validation results exceeding partner expectations. Evogene is currently advancing these programs toward subsequent stages of development. Across these programs, Evogene retains significant commercial rights to the resulting discoveries, providing the potential for future revenue generation as programs progress through development and toward commercialization. In parallel, Evogene is advancing its internal drug discovery program. The program has successfully completed the Hit-to-Lead stage and progressed into Lead Optimization, where the Company is generating proprietary molecules with the potential to serve as candidates for future preclinical development. In Agriculture, Evogene continues to advance its crop protection program targeting Septoria, a major fungal disease. The program is approaching completion of the Lead Optimization stage, with synthesized molecules currently undergoing advanced biological testing ahead of greenhouse and field trials. Major Expansion of ChemPass AI™ Evogene continues to substantially expand the capabilities of its core computational platform, ChemPass AI™. Following the Company's second agreement with Google Cloud, In June Evogene has integrated advanced AI Agents into its computational workflow. These autonomous systems are designed to automate complex research tasks that traditionally required weeks or months of highly specialized scientific work, enabling the company to perform these activities in a matter of minutes. In July, Evogene has also expanded its portfolio of predictive AI models. Among these is the recently announced Antifungal Potency Predictor (APP), designed to predict the activity of small molecules against fungal pathogens and provide an additional layer of biological prediction beyond target-level interaction. In addition, this month Evogene has expanded its virtual chemical space from approximately 36 billion to approximately 110 billion molecules, significantly increasing the scope of chemical molecules that can be explored by its computational discovery platform. Portfolio Optimization and Focus on Core Opportunities Consistent with its revised strategy, Evogene has substantially reduced or transitioned its non-core activities. Lavie Bio is no longer operational following the sale of the majority of its assets to ICL. Under the transaction, two additional payments remain due to Lavie Bio and Evogene, with the first received in July 2026 and the second expected in July 2027. In addition, Lavie Bio distributed a $4.25 million dividend to its shareholders during the second quarter, of which Evogene received approximately $2.9 million. Beginning in the second quarter of 2025, Lavie Bio's results of operations have been presented separately as discontinued operations. Biomica, following the successful completion of its Phase 1 clinical trial and the licensing of its lead oncology candidate BMC128 to Lishan Pharmaceuticals, is no longer conducting ongoing operations. During the second quarter, Biomica completed a $2.7 million dividend distribution to shareholders, of which Evogene received approximately $1.35 million. Beginning in the second quarter of 2026, Biomica's results are presented as discontinued operations in the consolidated statements of profit or loss. Casterra has significantly reduced and realigned its activities and is now focused exclusively on Brazil. Management Commentary "We have fundamentally transformed Evogene over the past 18 months," said Ofer Haviv, President and Chief Executive Officer of Evogene. "We have moved from a broad portfolio of activities to a highly focused organization centered on our AI-driven computational chemistry capabilities, while substantially reducing our cost structure and cash requirements." "At the same time, we are seeing meaningful validation of our technology through new collaborations, progress in our internal drug discovery programs, and major advances in ChemPass AI. The expansion of our virtual chemical space to approximately 110 billion molecules and the integration of autonomous AI Agents represent important steps forward in our ability to discover novel molecules faster and more efficiently." "Looking ahead, our priorities are clear: advance our existing pharmaceutical and agricultural programs, establish additional collaborations with leading biotechnology and pharmaceutical companies, advance our internal high-value programs, pursue strategic partnerships in agriculture, and continue to strengthen our computational platform." Nir Nimrodi, Chairman of Evogene's Board of Directors, added: "The second quarter reflects the significant transformation we have executed across Evogene. We have streamlined the organization, reduced our cash requirements, optimized our portfolio, and concentrated our resources on opportunities with substantial commercial potential." "The combination of a significantly lower cost base, a stronger financial foundation, growing commercial validation, and rapid technological progress provides Evogene with a substantially more focused platform from which to execute its strategy and create long-term shareholder value." First Half 2026 and Second Quarter Ended June 30, 2026, Financial Highlights Cash Position - As of June 30, 2026, Evogene held consolidated cash and cash equivalents of approximately $9.3 million. Consolidated cash usage during the second quarter of 2026 was approximately $2.1 million. Revenues for the first half of 2026 totaled approximately $0.7 million, compared to approximately $2.9 million in the same period of 2025, representing a decrease of approximately $2.2 million. The decrease is mainly attributable to lower revenue recognized by Casterra, which in the first half of 2025 included significant seed sales of approximately $2.0 million. Revenues for the second quarter of 2026 were approximately $0.3 million, representing a slight decrease compared to approximately $0.5 million in the same period last year, mainly attributable to the conclusion of AgPlenus' agreement with Bayer in May 2026. Research and development expenses, net of non-refundable grants, for the first half of 2026 were approximately $2.9 million, compared to approximately $3.5 million in the corresponding period of 2025, representing a decrease of approximately $0.6 million. The decrease is mainly attributable to lower R&D expenses in Casterra and AgPlenus, which were partially shifted to Evogene as the Company redirected its R&D efforts toward activities that are core to, and support the execution of, its new strategy. The decrease in R&D expenses was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.4 million. For the second quarter of 2026, R&D expenses were approximately $1.4 million, down from $1.7 million in the same period of 2025. This decrease is mainly attributable to decreased expenses in Casterra, partially offset by increased expenses in Evogene as mentioned above. In addition, the decrease was partially offset by the impact of exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.2 million. Sales and marketing expenses for the first half of 2026 and 2025 were approximately $0.7 million, with no material change between the periods. Sales and marketing expenses for the second quarter of 2026 were approximately $0.3 million, a slight decrease from approximately $0.4 million in the second quarter of 2025. General and administrative expenses for the first half of 2026 decreased slightly to approximately $2.0 million, compared to approximately $2.1 million in the corresponding period of 2025. The decrease in G&A expenses attributable to Evogene and its subsidiaries was substantially offset primarily by the impact of transaction costs related to the warrant inducement transaction and other legal expenses, totaling approximately $0.2 million, as well as by exchange rate fluctuations between the U.S. dollar and the NIS of approximately $0.2 million. General and administrative expenses for the second quarter of 2026 slightly decreased to approximately $0.9 million compared to approximately $1.0 million in the same period of the previous year. Financing expenses, net, for the first half of 2026 were approximately $1.7 million, compared to financing income, net, of approximately $0.8 million in the corresponding period of 2025. This change was primarily related to the accounting treatment and revaluation of warrants, including warrants issued in the August 2024 financing and the February 2026 warrant inducement transaction. As part of the February 2026 warrant inducement transaction, the Company recorded financing expenses of approximately $3.8 million during the first half of 2026. In addition, the Company recorded financing income of approximately $2.1 million related to the revaluation of warrants liability as of June 30, 2026. Financing income, net for the second quarter of 2026 was approximately $972 thousand, compared to financing expense, net of approximately $333 thousand in the same period of the previous year. The decrease is mainly associated with the warrants' accounting treatment as mentioned above. Loss from discontinued operations, net, for the first half of 2026 was approximately $0.5 million, compared to a loss from discontinued operations, net, of approximately $3.6 million in the corresponding period of 2025. For the second quarter of 2026, the loss from discontinued operations was approximately $0.2 million, compared to approximately $1.7 million in the second quarter of the previous year. These amounts primarily reflect the financial results of Lavie Bio's and Biomica's operations, as well as expenses related to the development and maintenance of MicroBoost AI for Ag, which are presented as a single-line item in the consolidated statements of profit and loss. Following the sale of the majority of Lavie Bio's assets, as well as Evogene's MicroBoost AI for Ag, to ICL in July 2025 and the licensing agreement with Lishan in February 2026, Lavie Bio's and Biomica's operating expense levels have decreased significantly. Net loss for the first half of each of 2026 and 2025 was approximately $7.7 million, with no material change between the periods. The net loss for the second quarter of 2026 was approximately $1.8 million, compared to approximately $4.7 million in the same period last year. The $2.9 million decrease in net loss was primarily due to decreased operating expenses, decreased loss from discontinued operations and increased financing income, net as mentioned above. About Evogene Ltd. Evogene Ltd. (Nasdaq/TASE: EVGN) is a pioneering company in computational chemistry, specializing in the generative design of small molecules for drug development and ag chemical products. At the core of its technology is ChemPass AITM, a proprietary generative AI designed to explore vast chemical space and generate novel, highly potent small molecules optimized across multiple critical parameters. Built on this powerful technological foundation, and through strategic partnerships alongside internal product development, Evogene is focused on creating breakthrough products for the pharmaceutical and agricultural industries, driven by the integration of scientific innovation with real-world industry needs. For more information, please visit www.evogene.com. Forward-Looking Statements This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may," "could," "expects," "hopes," "intends," "anticipates," "plans," "believes," "scheduled," "estimates," "demonstrates" or words of similar meaning. For example, Evogene uses forward-looking statements in this press release when it discusses, among other things: its advancing its existing pharmaceutical and agricultural division programs toward subsequent stages of development; its potential, future revenue generation as its pharmaceutical programs progress through development and toward commercialization; its potential establishment of additional collaborations with leading biotechnology and pharmaceutical companies; its advancement of its internal high-value programs, including its internal drug discovery program under which proprietary molecules have the potential to serve as candidates for future preclinical development; its pursuit of strategic partnerships in agriculture; its continuing to strengthen its computational platform; and its ability to execute its strategy and create long-term shareholder value. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene, including: the aftermath of the recent wars between Israel and the United States, on the one hand, and Iran and its proxy terrorist groups, Hamas, Hezbollah, and, intermittently, the Houthis in Yemen, on the other hand, (and any destabilizations in Israel, neighboring territories or the Middle East region resulting from those wars; Evogene's and its subsidiaries' reliance on third parties to conduct certain activities, such as field-trials and pre-clinical studies, which could cause significant delays in the conduct of those activities; the potential impact of a change of control of Evogene's board of directors due to the actions of dissident shareholders; as well as those additional risk factors identified in Evogene's reports filed with the applicable securities authority. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Evogene's actual results to differ from those reflected in its forward-looking statements, please see "Item 3.D. Risk Factors" in Evogene's Annual Report on Form 20-F for the year ended December 31, 2025, and its subsequent reports filed with or furnished to the U.S. Securities and Exchange Commission and Israeli Securities Authority. You should not place undue reliance on any forward-looking statements included in this press release. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions, except to the extent required by applicable law. Logo: https://mma.prnewswire.com/media/1947468/Evogene_Logo.jpg Contact: [email protected] Tel: +972-8-9311901 View original content:https://www.prnewswire.com/news-releases/evogene-reports-second-quarter-and-first-half-2026-financial-results-302854064.html

Download the Complete Report Here Key Takeaways: New CEO Craig Wichner is driving a sharper focus on commercial execution as initial LATAM rice commercialization moves to 2028. Wichner, appointed CEO in June after joining the Board in November 2025, has outlined three monetization pathways for the business: platform-program revenue, per-acre trait royalties and deeper multi-trait relationships with seed-company partners. Near-term revenue remains concentrated in Sustainable Ingredients, while rice advances toward commercialization. Revenue increased 6.5% y/y to $1.0 million in 2Q26, while 1H26 revenue rose 36% to $2.7 million from $2.0 million, driven by Sustainable Ingredients collaboration activity. In rice, testing of HT traits transferred into Interoc germplasm is underway, Fedearroz remains on track for a 2028 launch and Interoc has the potential for a limited 2028 launch focused on hybrid varieties. Rice remains the first significant test of CBUS’ royalty model, representing 5-7 million peak addressable acres and >$200 million of potential annual royalties across the Americas. The Interoc expansion from two traits to five is the clearest strategic proof point because it begins to validate CBUS’ ambition to become a recurring editing engine rather than a one trait licensor. The August amendment adds three potential future traits, shifting the contemplated relationship toward a multi-trait product pipeline and allowing the same RTDS and Trait Machine infrastructure to support repeated development programs within a single customer. That model is increasingly supported by execution across crops: CBUS has improved 10 customer canola and winter oilseed rape lines, returned six of those lines, and delivered three improved rice lines to a U.S. customer, while targeting an approximately 12-month editing turnaround across crops after demonstrating that cadence in canola. If replicated across CBUS’ seven existing rice seed-company customers, the opportunity becomes less dependent on individual trait launches and increasingly reflects an embedded breeding-platform relationship with recurring development and royalty potential. Rice remains the core royalty-validation pathway, but the move to a 2028 LATAM launch increases the importance of tangible commercial milestones over the next 12-18 months. CBUS maintains seven rice seed-company customers across Latin America and the U.S., while discussions continue with additional companies in Brazil and Argentina and several large participants in India. Latin America represents the bulk of the 5-7 million peak addressable acres and >$200 million annual Americas royalty opportunity, while the U.S. launch remains targeted for 2029 alongside Albaugh’s herbicide-registration timeline. During the quarter, CBUS advanced field trials of an improved first-generation trait and continued work to identify the genetic changes associated with increased herbicide tolerance and seed fertility. Technical progress remains encouraging, but the next stage of valuation de-risking increasingly depends on successful partner testing, definitive commercial agreements, seed production and launch readiness. Initial royalties are now expected with commercial acres in 2028 and to build through 2029 as adoption expands. Interoc’s increased focus on hybrid rice could strengthen the durability and strategic value of CBUS’ royalty model over time as the route to commercialization evolves. Latin American rice has historically been weighted toward conventional and inbred varieties, but management expects hybrid penetration to increase as the market evolves, following a progression already seen in crops such as corn and canola. Interoc is emphasizing hybrid varieties, while Fedearroz remains more oriented toward conventional varieties, giving CBUS exposure to both routes to market. Hybrid adoption could be particularly attractive for the platform model because differentiated proprietary seed provides a stronger vehicle for stacking multiple productivity traits and deepening recurring relationships with seed-company partners. In that context, Interoc’s expansion from two contemplated traits to five could ultimately prove more valuable than a series of standalone licenses, particularly if CBUS becomes embedded in the partner’s ongoing breeding and product-development pipeline. Sustainable Ingredients assumes greater importance as the near-term revenue bridge, with 1H26 collaboration revenue increasing 36% and additional BioFragrance scale-up orders still targeted for 2H26. CBUS generated $2.7 million of revenue in 1H26 versus $2.0 million a year earlier, including $1.0 million in 2Q26 versus $0.9 million y/y, with the YTD increase driven by Sustainable Ingredients collaboration agreements. The initial BioFragrance program received its first customer payment in 4Q25 and has entered the commercial ramp-up phase, with the partner having already validated ingredient performance. The remaining steps are scaling production to commercial volumes, establishing supply terms and pricing, and ultimately moving to commercial production orders. Management continues to expect additional scale-up orders for the initial BioFragrances during 2H26, while fully commercialized partnerships could represent $20-$40 million of annual revenue. With first rice royalties now expected in 2028, successful conversion of BioFragrance activity into larger commercial orders is increasingly important to building revenue and partially funding the path to the rice launch. Regulatory momentum broadened materially during the quarter, improving commercial optionality across Europe while adding validation in the U.S. and LATAM. The European Union approved rules in June that generally allow precision-edited crops with genetic changes comparable to conventional breeding and no added foreign DNA to receive conventional-like treatment, with implementation now entering an approximately two-year period. Herbicide-tolerant plants and plants engineered to produce insecticidal substances remain excluded from that treatment, making disease resistance and Pod Shatter Reduction more directly relevant European opportunities. CBUS expects Pod Shatter Reduction in winter oilseed rape to be its first planned submission under the new framework, complementing England’s existing Precision Bred Organisms regime. Ecuador has confirmed HT1 and HT3 rice traits are equivalent to conventional breeding, while Peru has established a case-by-case technical framework under which gene-edited products lacking foreign DNA may be excluded from its MVO classification and GMO moratorium. USDA-APHIS has determined CBUS traits are not regulated articles subject to its biotechnology regulations, and the FDA completed review of the altered-lignin alfalfa trait with no further questions. For the programs covered by these determinations, commercial execution is increasingly shifting toward partner conversion, definitive agreements and seed deployment as regulatory pathways become clearer. Customer acquisition is centered on converting technical programs into deep, multi-product relationships, increasing the economic value of seed-company partnerships while improving development efficiency. CBUS’ commercial model starts by editing a partner’s elite germplasm, returning improved material and then expanding the relationship as the customer opens more of its breeding roadmap to the platform. Interoc’s expansion from two contemplated rice traits to five provides early evidence of that strategy, while CBUS continues discussions beyond its seven existing rice customers with seed companies in Brazil, Argentina and India. Europe provides an additional business-development channel, supported by a small local team with decades of seed-industry experience and established relationships across the region. Cost discipline remains visible in the P&L, while selective investment in technology and AI is intended to increase development capacity without rebuilding the prior expense structure. R&D declined 30% y/y to $8.5 million from $12.2 million, while SG&A fell 19% to $5.4 million from $6.7 million, bringing R&D and SG&A combined down nearly $5 million, or 26%, to $13.9 million. Operating loss consequently narrowed 28% to $12.9 million from $17.9 million, while net loss improved 17% to $22.1 million from $26.6 million and loss per share narrowed to $0.29 from $0.61. The gap between operating and net loss remains largely driven by $9.5 million of non-cash related-party royalty-liability interest expense, up from $8.7 million y/y, representing the largest reconciling item. Additional non-core savings are expected as facility consolidation is completed, while management is redirecting part of those savings toward commercial priorities, personnel and technology, including company-wide AI deployment aimed at improving employee productivity at less than the cost of equivalent incremental headcount. Over time, these investments could allow the same organization to support more crop and customer programs, helping platform revenue scale against a leaner cost base. Cash burn continues to trend lower, improving operating efficiency as CBUS funds the path to commercialization. Cash and cash equivalents declined to $20.4 million at June 30 from $30.3 million at March 31, while quarterly net cash usage declined approximately 19% sequentially and 31% y/y. Net cash used in operating activities was $20.9 million in 1H26 versus $25.4 million in 1H25, a $4.5 million improvement, and management is moving toward approximately $9 million of quarterly usage while targeting an annualized net cash-usage run rate of ~$35 million or less exiting 2026. Importantly, working capital was not a source of cash support: accounts payable declined to $5.6 million from $8.1 million at year-end, accrued compensation fell to $2.6 million from $3.1 million, while accounts receivable increased to $0.8 million from $0.5 million. With PP&E declining to $4.9 million from $6.3 million and 1H26 capital purchases of only about $0.1 million, the funding requirement remains primarily operating rather than capital-intensive. Existing cash is expected to support planned operating expenses and capital requirements into early 1Q27 absent additional financing, leaving capital access central to the near-term investment case as CBUS bridges toward BioFragrance scale-up and first rice royalties in 2028. Balance sheet reflects substantial equity funding during 1H26, providing near-term liquidity, while the new ATM adds additional financing flexibility. CBUS generated $31.4 million of net financing cash flow in 1H26, including approximately $19.8 million of net proceeds from the January offering and $13.6 million from the March offering. In May, the company also established a $50 million ATM facility with Jefferies, with only minimal utilization through June 30, preserving additional capacity should market conditions support further issuance. The ATM therefore provides an important bridge option, while the timing and economics of future issuance will remain relevant to per-share value creation as CBUS works toward BioFragrance scale-up and initial rice royalties in 2028. The near-term outlook points to a stronger revenue trajectory and continued narrowing of losses, supported by Sustainable Ingredients activity and a structurally lower cost base ahead of rice commercialization in 2028. As a near-term reference point, 3Q26E revenue is estimated at approximately $1.3 million based on Street estimates sourced from TIKR, as BioFragrance scale-up activity and collaboration milestones become more important. Annual estimates call for revenue to increase from $3.6 million in 2025 to $5.2 million in 2026E, $12.4 million in 2027E and $47.6 million in 2028E, reflecting a larger commercialization inflection as rice royalties begin to contribute. The lower operating-cost base should also support continued improvement in earnings, as annual loss is expected to narrow from $127.1 million in 2025 to $56.8 million in 2026E, $49.9 million in 2027E and $14.7 million in 2028E. Key milestones over the balance of the year remain additional BioFragrance scale-up orders, successful Interoc testing and progress toward a definitive LATAM commercialization agreement ahead of initial rice royalties in 2028. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. CBUS’ disclosed Americas rice HT royalty opportunity remains the cleanest base valuation anchor, while the broader trait portfolio provides substantial longer-duration optionality. Management continues to frame the Americas rice herbicide-tolerance opportunity at ~5–7 million peak addressable acres and >$200 million of potential annual royalties at peak. This is not a revenue forecast and should not be treated as de-risked revenue, but remains the most relevant starting point given rice HT is CBUS’ clearest royalty-validation pathway. The opportunity is supported by seven active rice seed-company relationships, ongoing testing of material transferred into Interoc germplasm and the August expansion of the contemplated Interoc relationship from two traits to five. At a share price of approximately $1.77, CBUS’ 76.43 million shares outstanding imply an equity value of approximately $135.3 million, equivalent to ~0.68x the disclosed >$200 million peak Americas rice royalty opportunity before assigning value to Sustainable Ingredients or the broader crop portfolio. The important change this quarter is timing rather than addressable economics: initial LATAM commercialization has moved from late 2027 to 2028, increasing the importance of execution, financing and adoption in determining how much of the disclosed opportunity investors are willing to recognize. A discounted rice-only framework continues to illustrate substantial valuation sensitivity if CBUS converts its lead royalty opportunity into recurring acreage economics. Applying an illustrative 5.0x-10.0x multiple to $200 million of peak annual Americas rice HT royalties and discounting the resulting value back five years at 15% produces an equity-value-equivalent range of approximately $497 million to $994 million, or $6.51-$13.01 per share using 76.43 million shares outstanding; the 7.5x midpoint implies approximately $746 million, or $9.76 per share. The framework is intended to capture the potential economics of a mature royalty stream rather than apply a conventional agricultural revenue multiple, since successful trait royalties should carry materially higher incremental margins than a seed-manufacturing model. Importantly, this remains an illustrative sensitivity rather than a forecast: realizable value depends on definitive LATAM commercial economics, successful Interoc testing and seed production, farmer adoption, Albaugh’s U.S. herbicide-registration timeline, IP durability, capital requirements and the pace at which the 5–7 million-acre opportunity converts into royalty-bearing acreage. The move to a 2028 LATAM launch does not alter the underlying methodology, but increases the importance of commercial agreements and launch readiness in determining how much of the illustrative value investors are willing to recognize. Sustainable Ingredients adds nearer-term optionality and could become increasingly relevant to valuation if current scale-up activity converts into repeatable commercial economics. Sustainable Ingredients supported $2.7 million of 1H26 revenue, up 36% y/y, following the first BioFragrance customer payment in 4Q25, with additional scale-up orders still targeted for 2H26. Management estimates that fully commercialized BioFragrance partnerships could represent $20-$40 million of annual revenue. Applying an illustrative 5.0x-8.0x multiple and discounting the resulting value back five years at 15% implies approximately $0.65-$2.10 per share of incremental value. We would not include that value in the base rice case at this stage, however, given limited disclosure around commercial order size, pricing, margin structure, exclusivity and recurring economics. The more important near-term valuation driver is whether 2H26 scale-up orders convert into larger commercial activity and whether subsequent fragrance products can move through the same edited-yeast process with lower incremental development requirements. The broader trait portfolio adds meaningful optionality, but valuation still hinges on execution and funding discipline. Management’s productivity-trait pipeline spans ~367-369 million acres and >$1.9 billion of potential annual royalties, versus 5-7 million acres and >$200 million for Americas rice HT. Programs extend across rice, canola, soybean and longer-duration traits, with Interoc’s expansion from two to five traits signaling deeper customer engagement. However, these opportunities remain less de-risked than rice, and the shift of LATAM royalties to 2028, alongside $20.4 million of cash and runway into early 1Q27, keeps execution and financing risk central. The key rerating drivers remain a definitive LATAM commercialization agreement, successful Interoc testing and launch preparation, 2H26 BioFragrance scale-up orders and disciplined funding execution. Progress across these milestones would support greater recognition of the rice royalty base while increasing the value attributed to Sustainable Ingredients and the broader trait portfolio. Street consensus provides a useful external reference point. The current mean Street price target of $14.33, sourced from TIKR, sits above the $13.01 high end of the illustrative rice-only framework, suggesting consensus incorporates some value beyond the Americas rice HT opportunity, including Sustainable Ingredients scale-up, broader crop programs, geographic expansion and the RTDS / Trait Machine platform. Read Exec Edge’s Initiation on Cibus, Inc. Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Cibus Inc: Interoc Expands Rice Trade to 5 Traits, 36% Revenue Growth – Quarterly Update Report appeared first on ExecEdge.

This article first appeared on GuruFocus. Cash Position: $13.1 million as of March 31, 2026. Cash Usage: $2.8 million during Q1 2026. Revenue: $0.3 million in Q1 2026, down from $2.3 million in Q1 2025. Cost of Revenues: $0.1 million in Q1 2026, down from $1.5 million in Q1 2025. R&D Expenses: $1.8 million in Q1 2026, down from $2.5 million in Q1 2025. Sales and Marketing Expenses: $0.4 million in Q1 2026, unchanged from Q1 2025. G&A Expenses: $1.2 million in Q1 2026, stable compared to Q1 2025. Operating Loss: $3.2 million in Q1 2026, up from $3 million in Q1 2025. Net Loss: $5.9 million in Q1 2026, up from $3 million in Q1 2025. Financing Expenses: $2.7 million in Q1 2026, compared to financing income of $1.1 million in Q1 2025. Income from Discontinued Operations: $14,000 in Q1 2026, compared to a loss of $1.1 million in Q1 2025. Warning! GuruFocus has detected 7 Warning Signs with EVGN. Is EVGN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evogene Ltd (NASDAQ:EVGN) has made significant progress in its core technology platform, ChemPass AI, with a second collaboration with Google to enhance AI capabilities. The company has established strategic collaborations in the pharmaceutical sector, including partnerships with Systasy Bioscience and Ludwig Maximilian University Hospital, focusing on unmet medical needs. Evogene Ltd (NASDAQ:EVGN) has a growing pipeline in its Pharma division, with new collaborations targeting significant markets such as neurodegenerative disorders and chemotherapy resistance. The company's subsidiary, AgPlenus, is advancing its internal project on a new fungicide for Septoria, addressing a major market need in agriculture. Evogene Ltd (NASDAQ:EVGN) is actively pursuing strategic collaborations and partnerships across its business areas, positioning itself for sustained growth and long-term success. Evogene Ltd (NASDAQ:EVGN) reported a net loss of approximately $5.9 million for the first quarter of 2026, an increase from the previous year. The company's revenues for the first quarter of 2026 decreased significantly to approximately $0.3 million from $2.3 million in the same period of 2025. The collaboration with Bayer in the ag chemical sector was terminated due to issues with the biology of the target protein, impacting potential developments. Evogene Ltd (NASDAQ:EVGN) is facing challenges in convincing big pharma companies to adopt its technology, which may delay significant transactions and equity investments. The company has discontinued or significantly scaled down activities in subsidiaries like Lavie Bio and Biomica, reflecting a strategic shift but also a reduction in operational scope. Q: When can Evogene sign a strategic deal with a tech, pharma, or ag partner that includes an investment into shares? A: Ofer Haviv, President and CEO, explained that the timing of such a transaction depends on progress and results in various areas. He believes the ag sector, where Evogene is active through AgPlenus, could be the first area for a strategic transaction. Additionally, collaborations with large tech companies like Google could lead to significant deals. In pharma, while discussions with big pharma have started, it may take time to reach a transaction involving equity investment. Q: What is the status of the collaboration with Bayer in ag chemical development? A: Dan Gelvan, CEO of AgPlenus, stated that while the collaboration with Bayer yielded significant novel active compounds, it was terminated due to issues with the biology of the target protein. Both parties are exploring future collaboration opportunities leveraging AgPlenus' computational chemistry capabilities. Q: Can you provide an update on the progress of the Pharma division's collaborations? A: Gabi Tarcic, Chief Development Officer, highlighted three new collaborations in the Pharma division, focusing on hyperinflammatory diseases, demyelinating disorders, and chemotherapy resistance. These collaborations integrate Evogene's ChemPass AI with partners' technologies to accelerate drug candidate identification and address unmet medical needs. Q: What are the financial highlights for the first quarter of 2026? A: Polina Ravzin, VP Finance, reported a net loss of approximately $5.9 million, an increase from the previous year due to decreased revenues and increased net financing expenses. The cash position was approximately $13.1 million, with significant cash distributions expected from subsidiaries Lavie Bio and Biomica. Q: What are the future expectations for Evogene's core areas of activity? A: Ofer Haviv stated that Evogene anticipates meaningful progress across its core areas, including technology, pharma, and ag chemical development. The company aims to strengthen its competitive edge through technological collaborations, advance its drug development pipeline, and form new collaborations in the ag sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript.