Revenue Decline Offset by Expense Reductions and Subsidiary Value Realization
May 23, 2025 — Rehovot, Israel — Evogene Ltd. (Nasdaq: EVGN, TASE: EVGN), a leading computational biology firm, reported its financial results for the first quarter of 2025, showcasing a sharp focus on operational efficiency and monetizing subsidiary assets amid reduced revenues.
Financial Performance Overview
Revenues for Q1 2025 totaled approximately $2.4 million, compared to $4.2 million in Q1 2024. The previous year’s revenue benefited from significant license fees totaling $3.5 million from collaborations with Corteva and Bayer. This year’s primary revenue driver was increased seed sales by subsidiary Casterra.
Operating expenses decreased significantly across the board:
- R&D Expenses dropped to $3.2 million from $4.8 million, primarily due to scaled-back activities at Biomica and Lavie Bio.
- Sales & Marketing Expenses fell to $0.6 million from $1.0 million, largely reflecting lower Lavie Bio promotional activities.
- G&A Expenses were reduced to $1.3 million from $1.7 million.
- Operating Loss remained stable at $4.1 million.
- Net Loss narrowed to $3.0 million, down from $3.8 million, bolstered by $1.1 million in financing income linked to pre-funded warrants from a 2024 fundraising round.
Strategic Developments and Subsidiary Highlights
Evogene continues to pursue a strategy centered on two priorities: monetizing subsidiary assets and advancing its ChemPass-AI platform in pharmaceuticals.
Lavie Bio Acquisition by ICL: In April, ICL agreed to acquire most of Lavie Bio’s activities and MicroBoost AI for Ag for a combined value of $18.75 million. The deal, pending closing in Q2 2025, includes redemption of a SAFE investment and is expected to bring direct cash and dividend benefits to Evogene.
Casterra Ag: Marked progress in seed delivery with 250 tons shipped to Africa and expanded marketing efforts in Brazil. Proof-of-concept trials for castor grain are underway in Kenya and Brazil.
AgPlenus: Identified a novel mode of action for fungicides targeting Septoria in wheat, marking a major R&D milestone.
Biomica: Advanced its BMC128 therapy to Phase I, with promising early results. The unit continues to seek partnerships and funding for Phase II development.
Outlook
CEO Ofer Haviv emphasized that Evogene is streamlining operations and reallocating resources to high-impact areas. “Our disciplined execution is positioning us for sustainable growth, leveraging AI-driven innovation and strategic asset monetization.”
