Evogene Ltd. Q3 FY2025 earnings call

• Evogene executed an organizational change and cost reduction plan, with total operating expenses net of approximately $2.9 million in the third quarter of 2025 compared to $6.6 million in the same period of 2024, and this expense level is expected to be maintained.
• Lavie Bio completed transfer of its team and majority of activity to ICL, collaboration with existing partner continues positively, and distribution of funds to shareholders is advancing.
• Biomica's clinical trial continues as planned, expected to complete in early 2026, and efforts to secure partners for its development program continue.
• Casterra partnered with Fantini to advance agricultural mechanization for scalable commercial castor farming, and is investing in strengthening position in Brazil's castor farming ecosystem.
• AgPlenus underwent organizational restructuring, including workforce reductions.
• Evogene's related party Finally Food raised $1.2 million and signed commercial agreement.
• Evogene's new strategy focuses on computational chemistry and generative design of small molecules for pharma and agriculture, with ChemPass AI at the core, capable of simultaneous optimization of multiple parameters for high potency, novelty, and multiparameter excellence.
• In agriculture, AgPlenus has collaborations with Bayer and Corteva on new herbicides, and is advancing internal projects on fungicide candidates against Septoria.
• In pharma, Evogene partnered with Professor Ehud Gazit of Tel Aviv University to develop new therapeutics for metabolic disease using ChemPass AI.

During the first 9 months ending September 30, 2025, Evogene's total revenues were approximately $3.5 million, down from $4 million in the same period of 2024. The decrease was mainly due to lower revenue from AgPlenus' activity (including a one-time payment from Bayer in Q1 2024), partially offset by an increase in seed sales from Casterra. Research and development expenses for the 9 months ending September 30, 2025, were approximately $5.9 million, down from $9.8 million in the same period of 2024, primarily due to reductions in Biomica's and Evogene's R&D activities and the discontinuation of Canonic's operations. Sales and marketing expenses for the 9 months were approximately $1.1 million, down from $1.6 million in the same period of 2024, mainly due to headcount reductions across subsidiaries. As of the end of the third quarter of 2025, cash and short-term bank deposit balance was approximately $16 million. Lavie Bio's results for the 9- and 3-month periods ending September 30, 2025, are presented as income or loss from discontinued operations net, with $3.5 million in revenues for 9 months and $7.9 million in the third quarter of 2025.

• The company expects to start breaking the business benefits of the strategic shift over the coming year.
• Plans to initiate roadshows and participate in conferences next year to promote the new story of Evogene, with main focus on ChemPass AI and its utilization in pharma and agriculture.
• Anticipates announcing additional collaborations in the pharma and agriculture sectors within the next 6 to 12 months, starting with small biotech companies for pharma partnerships.

• Current war between Israel and Hamas and its adverse impact on economic activity in Israel, including uncertainty for the company's operations in Southern Israel.
• Factors described in greater detail in Evogene's annual report on Form 20-F and other filed reports, including risk factors under the heading 'Risk Factors'.

Q: Has the levels of interest in AI ChemPass increased post the recent NVIDIA and Eli Lilly AI drug discovery partnership. Also, could you please elaborate why Evogene's proprietary database should garner similar interest from others in pharma and technology industries?

A: The NVIDIA and Eli Lilly announcement increased interest in AI activity for the pharma industry. Evogene's ChemPass technology is unique with its multiparameter approach, team with PhDs in genomics, and tailored technology for each partner, offering a different approach than one-size-fit-all which is expected to generate similar interest.

Q: How close are you to unlocking partners with AI ChemPass?

A: There is increased interest in what Evogene is offering. Expect to start announcing additional collaboration agreements with biotech companies at the beginning of next year, starting with small biotech companies and potentially moving to pharma companies later.

Q: Last quarter, you spoke to doing more IR to drive awareness to the company, but very little seems to be done. What's the IR strategy going forward? And can we rely on it being implemented in short order?

A: The analyst call now presents the new Evogene story focusing on ChemPass AI, collaboration, etc. Plan to initiate roadshows and participate in conferences next year, with Evogene's new story to be out there starting from December, and will be involved in IR events.

Q: Could you highlight upcoming catalysts over the coming 6 to 12 months? Specifically, when could we expect the first partnership?

A: Anticipate press releases on new collaborations in pharma (biotech companies using ChemPass AI), expansion of existing or new collaborations in ag (AgPlenus), and announcements of additional collaborations with companies like Google. Expect to start seeing first partnerships with small biotech companies in the next 6 to 12 months.

Q: What type of revenue level can we expect for castor seeds in Q4 and for 2026?

A: Can't disclose specific revenue levels, but Casterra is in talks with strategic companies in the castor oil field, and will share information when discussions materialize into agreements.

Q: How excited are you about AI ChemPass compared to all your other times at Evogene?

A: Evogene has shifted focus to pharma with ChemPass AI, which is different from previous ag focus. The company has the right people with PhDs for AI, and believes if it can replicate ag success in pharma, the company will be significant, with financial rewards expected from pharma activities.