midastouch017
2 days ago
Biomica Presents Positive Clinical Data Update from Ongoing Phase 1 Trial of Microbiome-Based Therapeutic, BMC128, for Refractory RCC, NSCLC & Melanoma
https://finance.yahoo.com/news/biomica-presents-positive-clinical-data-150000267.html
Preliminary Phase 1 results show promising trends for BMC128 in combination with nivolumab in refractory cancer patients. Data will be showcased at the 2024 American Society of Clinical Oncology (ASCO) annual meeting.
REHOVOT, Israel, May 23, 2024 /PRNewswire/ -- Biomica Ltd., a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics and a subsidiary of Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), today announced encouraging initial findings from an ongoing Phase 1 clinical trial. In the study, Biomica is investigating the safety and tolerability of its microbiome-based immuno-oncology candidate, BMC128, in combination with nivolumab, an anti-PD1 immune checkpoint inhibitor, in patients with non-small cell lung cancer (NSCLC), melanoma, or renal cell carcinoma (RCC).
All trial participants, 11 patients, had experienced disease progression in prior immunotherapy treatment before joining the trial. These preliminary findings represent some of the initial positive evidence emerging from the burgeoning field of clinical research on cancer therapies leveraging gut microbiota. While these results are preliminary and subject to further validation, they suggest potential benefits for patients facing advanced stages of these malignancies.
ASCO 2024 Presentation Details:
Title: Preliminary results from a First-in-Human (FIH), open-label Phase 1 study with BMC128, a rationally designed live bacterial consortium, in combination with nivolumab.
Session Type: Poster Session
Abstract Number: 8631
Date and Time: June 3, 2024, 1:30 PM – 4:30 PM (CDT)
Key observations from the study include:
Safety Profile: As of the data cutoff date, the safety profile of BMC128 has been exceptional, with no major safety events potentially associated with BMC128 reported during the course of BMC128 monotherapy or combination treatment, indicating a favorable safety profile for the investigational therapy.
Clinical Responses: As of the data cutoff date, among the patients included in the study, 72% of refractory cases exhibited positive clinical signals, indicating a potential efficacy for the BMC128 and nivolumab combination.
Response Rates: As of the data cutoff date, one patient demonstrated partial response (PR) upon imaging and RECIST v1.1 assessment and remains actively responding to treatment. Additionally, 64% of patients' disease stopped progressing following the combination treatment, and they displayed stable disease (SD) and sustained benefits beyond the first imaging assessment, suggesting additional important potential clinical benefit.
Durability of Response: As of the data cutoff date, 55% of patients showed sustained clinical benefit, with notable durations of response of over 16 weeks and with one patient exceeding 80 weeks.
Cross-Cancer Effectiveness: 100% of RCC patients and 60% of NSCLC patients in the study demonstrated positive clinical outcomes, indicating potential efficacy across different cancer types.
With these encouraging early results, it is important to note that the study remains ongoing. Further data will become available and analyzed through the next few months to gain a deeper understanding of the therapeutic potential of BMC128 in combination with nivolumab in cancer treatment.
Prof. Gal Markel, Director of the Davidoff Cancer Center, Rabin Medical Center and Biomica's Scientific Advisory Board member, said: "The positive trends emerging from the ongoing Phase 1 trial of BMC128, particularly in combination with nivolumab, underscore the transformative potential of microbiome-based therapeutics in oncology. These findings bring hope to patients contending with refractory RCC, NSCLC, and melanoma, envisioning a future where innovative treatments like BMC128 could provide meaningful solutions to longstanding challenges in cancer care. Additionally, the observed cross-cancer effectiveness hints at BMC128's broad applicability across different cancer types, further solidifying its significance in the field of oncology. The demonstrated safety profile thus far, alongside the encouraging clinical benefits including response rate and notable durability, accentuates the potential efficacy of BMC128 in addressing the unmet needs of patients grappling with these malignancies. These initial results mark a significant advancement, reflecting our steadfast commitment to pioneering innovative solutions that address critical unmet needs in oncology."
Dr. Elran Haber, Biomica CEO, stated, "The preliminary results from this Phase 1 study show positive evidence of BMC128's superior safety profile and potential efficacy when combined with anti-PD1 checkpoint inhibitor immunotherapy. This suggests potential benefits for patients with refractory NSCLC, melanoma, or RCC who have not responded to, or developed resistance to previous immunotherapy treatments. We believe BMC128 has the promise to be a potential therapy for patients fighting cancer, and we look forward to continuing to evaluate BMC128's beneficial activity in subsequent phases of clinical development. Furthermore, these results underscore the strength of Biomica's computational platform for microbiome drug discovery, developed with Evogene, validating our approach to innovative therapeutic solutions."
Additional information about the trial, can be found at: https://clinicaltrials.gov (ClinicalTrials.gov Identifier: NCT05354102).
About ASCO:
Founded in 1964, the American Society of Clinical Oncology, Inc. (ASCO®) is committed to the principle that knowledge conquers cancer. Together with the Association for Clinical Oncology, ASCO represents nearly 45,000 oncology professionals who care for people living with cancer. Through research, education, and promotion of high quality, equitable patient care, ASCO works to conquer cancer and create a world where cancer is prevented or cured, and every survivor is healthy. The ASCO Annual Meeting is a unique and unparalleled opportunity to connect with one of the largest, most diverse audiences in global cancer care as well as global cancer experts and professionals, to discover the latest innovations in cancer research and education.
About BMC128:
BMC128 is a rationally-designed microbial consortium identified and selected through a detailed functional microbiome analysis using PRISM, a proprietary high-resolution microbiome analysis platform powered by Evogene's MicroBoost AI platform.
Developed as a Live Bacterial Product (LBP), BMC128 is an LBP consortium comprised of four unique bacterial strains, natural inhabitants of the human intestinal tract, that harbour specific functional capabilities with the potential to enhance immunological therapeutic responses and facilitate anti-tumor immune activity through multiple biological processes.
Rationally-designed consortia are multi-strain products designed to restore diversity and specific functionality to a host's microbial community with individually selected, cultured bacteria.
About Biomica Ltd.:
Biomica is a clinical stage biopharmaceutical company developing innovative microbiome-based therapeutics utilizing PRISM system, a proprietary computational platform powered by Evogene's MicroBoost AI tech-engine. licensed from Evogene. Biomica aims to identify and characterize disease-related microbiome entities and to develop novel therapeutics based on these understandings. The company is focused on the development of therapies for antibiotic resistant bacteria, immuno-oncology, and microbiome-related gastrointestinal (GI) disorders. Biomica is a subsidiary of Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN).
For more information, please visit www.biomicamed.com.
About Evogene Ltd.:
Evogene (Nasdaq: EVGN, TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science-based products by utilizing cutting-edge technologies to increase the probability of success while reducing development time and cost. Evogene established three unique tech-engines - MicroBoost AI, ChemPass AI, and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each tech-engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI).
Evogene uses its tech-engines to develop products through subsidiaries and strategic partnerships. Evogene's subsidiaries currently utilize the tech-engines to develop human microbiome-based therapeutics by Biomica, ag-biologicals by Lavie Bio, ag-chemicals by AgPlenus, medical cannabis products by Canonic and castor varieties, for the biofuel and other industries, by Casterra.
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 "will", "may", "could", "expects", "intends", "anticipates", "plans", "believes", "scheduled", "estimates", "demonstrates", or words of similar meaning. For example, Evogene and Biomica are using forward-looking statements in this press release when they discuss the safety and potential efficacy of BMC128 and its potential benefits for patients with refractory NSCLC, melanoma, or RCC who have not responded to or developed resistance to previous immunotherapy treatments. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, and 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 and its subsidiaries, including, without limitation, the current war between Israel Hamas and Hezbollah and any worsening of the situation in Israel such as further mobilizations or escalation in the northern border of Israel and those risk factors contained in Evogene's reports filed with applicable securities authorities. 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.
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Evogene Investor Relations Contact:
Rachel Pomerantz Gerber
Head of Investor Relations at Evogene
rachel.pomerantz@evogene.com
Tel: +972-8-9311901
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midastouch017
2 days ago
Evogene Reports First Quarter 2024 Financial Results
https://finance.yahoo.com/news/evogene-reports-first-quarter-2024-110000510.html
Conference call and webcast: today, May 23, 2024, 9:00 am ET
Financial and Business Highlights:
Q1 2024 revenue: $4.2M vs. $0.6M in Q1 2023; anticipating continued growth in 2024.
Q1 2024 net loss: $3.8M vs. $7.0M in Q1 2023.
Projected 2024 cash usage, excluding Lavie Bio and Biomica: $8.0M, down 36% from $12.5M in 2023.
Ceasing Canonic's operations results in annualized savings of approximately $1.5 million.
Casterra's new agreements with African and Brazilian castor seed growers secure 900 tons of castor seeds, expected to fulfill all standing orders by end of 2024.
Biomica to present preliminary Phase 1 clinical trial results for BMC128 at the 2024 ASCO conference on June 3.
Lavie Bio received $2.5M, the second half of advanced payment from Corteva; announced new collaboration with Syngenta for bio insecticides; extended trials with Bayer for bio fungicides. Marketing and sales for Yalos™ are expanding in the US and Canada, with more crops added.
AgPlenus announced a new collaboration with Bayer, including an upfront payment, research funding, milestone payments, and future royalties; achieved a milestone with Corteva in an existing collaboration agreement.
REHOVOT, Israel, May 23, 2024 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), a leading computational biology company aiming to revolutionize the development of life-science-based products, today announced its financial results for the first quarter period ended March 31, 2024.
Mr. Ofer Haviv, Evogene's President and CEO, stated: "Evogene's mission is to direct and accelerate the development of life-science based products. During the past years we developed three innovative AI tech-engines addressing the main development challenges of 3 life-science based product categories:
MicroBoost AI – for the development of microbe-based products,
ChemPass AI – for small-molecule-based products, and
GeneRator AI – for products based on genetic elements.
Our AI tech-engines were structured to be compatible with the tremendous potential of various market segments and not limited to only one specific segment.
In order to capture the value of our AI tech-engines, our business strategy is to establish diverse collaborative partnerships through licensing or collaboration, with expert partners in specific fields that complement our technology. Together, we'll develop novel products, aiming for full or partial ownership upon project completion.
This approach maximizes the potential of our AI tech-engines, while reducing financial and development risks. We believe this strategy holds the potential for groundbreaking innovations and significant financial gains for Evogene.
Today, Evogene has 4 subsidiary companies, and diverse engagements with leading companies in additional market segments, not covered by our subsidiaries.
I am very pleased to share with you the main achievements made by Evogene and its subsidiaries from the beginning of the year."
Evogene Updates:
Ceasing Canonic's operation - Evogene has decided to cease its subsidiary Canonic, which specialized in customized medical cannabis products, following challenging market conditions in the medical cannabis sector. This decision results in annualized savings of approximately $1.5 million. Resources will be reallocated to areas with greater growth potential, such as funding Casterra's needs for on-going capital.
Establishment of Finally Foods - In March 2024, Evogene and The Kitchen FoodTech Hub by Strauss Group, established Finally Foods Ltd., an AI-driven company focused on sustainable protein production in plants, for the food sector. Finally Foods will leverage Evogene's AI technology to modify plants for efficient protein production. The company has secured pre-seed funding from TKH and the Israeli Innovation Authority. Evogene holds approximately 40% stake in the company.
Collaboration with Verb Biotics - In February 2024, Evogene and Verb Biotics entered into a collaboration agreement to advance probiotic innovation by developing new strains of probiotic bacteria that produce sustainable quantities of microbial metabolites, which enhance human health and vitality. The partnership will leverage Evogene's MicroBoost AI tech-engine and Verb Biotics' expertise in microbiome health.
Subsidiaries Updates:
Casterra Ag Ltd. – focuses on developing an integrated solution to enable large-scale commercial cultivation of castor to address the global demand for stable castor oil supply, mainly for the biodiesel industry. Casterra is utilizing GeneRator AI tech engine to direct and accelerate the development of its unique elite castor seed varieties.
Under the supervision of Casterra's new CEO, the company has recently engaged with castor seed growers in Africa and Brazil. These engagements are expected to yield approximately 900 tons of castor seeds in 2024, fulfilling all existing purchase orders and providing additional inventory later this year. The balance of the existing purchase orders is anticipated to be delivered in the second half of 2024.
Biomica Ltd. - a clinical-stage biopharmaceutical company developing innovative microbiome-based therapeutics, utilizing Evogene's MicroBoost AI tech-engine.
In January, 2024, Biomica reached a significant milestone by completing Phase I trial enrollment for its microbiome-based immuno-oncology drug BMC128 - a rationally designed consortia of 4 bacteria. Biomica recently announced that it will be presenting preliminary Phase 1 study data of BMC128 in a poster presentation at the 2024 ASCO Annual Conference, on June 3rd.
Biomica is now preparing for advancing to Phase 2 of BMC128 clinical trial, and already conducted a pre-IND meeting with the FDA, aiming to initiate Phase 2 in 2025.
Results from Biomica's pre-clinical study in the IBS program, conducted in collaboration with NYU's medical school, were presented at the Digestive Disease Week 2024 Annual Conference in May 2024.
Lavie Bio Ltd. - a leading ag-biologicals company that develops microbiome-based, computational-driven novel bio-stimulant and bio-pesticide products, utilizing Evogene's MicroBoost AI tech-engine.
In February, 2024, Lavie Bio announced that it had met the requirements of its licensing agreement for LAV311 & LAV312 with Corteva. This achievement enabled the successful receipt of the second half of an advanced payment, amounting to $2.5 million, bringing the total to $5 million.
In February, 2024, Lavie Bio signed an agreement with Syngenta for the development of new biological insecticidal solutions.
Lavie Bio has extended its joint validation trials with Bayer for its bio-fungicides, following successful laboratory and greenhouse testing. This joint effort, aimed at combating diseases affecting fruits and vegetables globally, has moved to field experiments for further validation.
In March, 2024, Lavie Bio partnered with Ceres Global Ag Corp. to integrate its bio-inoculant, Yalos™, into regenerative agriculture programs across North America. This announcement and other marketing and sales efforts support the penetration of Yalos™ in US and Canada markets with additional crops being added for treatment. Based on initial orders and sales projections, 2024 revenues are anticipated to increase compared to the previous year.
AgPlenus Ltd. - a global leader in computational design and development of novel sustainable crop protection products, utilizing Evogene's ChemPass AI tech-engine.
In February, 2024, AgPlenus announced a licensing and collaboration agreement with Bayer to develop a novel mode of action broad-spectrum herbicide targeting the APTH1 protein. The agreement entitles AgPlenus to an upfront payment, which was received on March 2024, ongoing research funding, milestone payments, and royalties based on future product sales. Bayer will have the exclusive license for developing and commercializing products resulting from this collaboration.
In March, 2024, AgPlenus announced achieving a milestone under its existing collaboration with Corteva to develop new herbicides through a novel mode of action, APCO12, discovered by AgPlenus. The next phase of this collaboration will focus on optimizing the herbicide candidates towards a commercial-level product.
Financial Highlights:
Cash Position: As of March 31, 2024, Evogene held consolidated cash, cash equivalents, and short-term bank deposits of approximately $26.6 million, compared to approximately $31.1 million as of December 31, 2023. The consolidated cash usage during the Q1 2024 was approximately $4.5 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $3.4 million in cash. Projected cash usage for 2024, excluding Lavie Bio and Biomica, is expected to be around $8.0 million, marking a notable 36% decrease from approximately $12.5 million in 2023.
Revenue: Revenues for the first quarter of 2024 were approximately $4.2 million, a significant increase from approximately $0.6 million in the same period the previous year. This growth was primarily driven by revenues recognized from Lavie Bio's licensing agreement with Corteva and AgPlenus's new collaboration with Bayer. Evogene anticipates continued revenue growth in 2024 compared to the previous year, mainly in the second half of 2024 based on Casterra's forecast for seed-order supply.
R&D Expenses: Research and development expenses for the first quarter of 2024 were stable at approximately $4.8 million, net of non-refundable grants, consistent with the same period in the previous year.
Sales and Marketing Expenses: These expenses increased to $992 thousand in the first quarter of 2024 compared to $800 thousand in the same period of the previous year. The increase was driven by heightened sales and marketing activities for Casterra's elite seed varieties and Lavie Bio's first commercial product, Yalos™.
General and Administrative Expenses: General and administrative expenses rose to approximately $1.7 million in the first quarter of 2024, compared to approximately $1.5 million in the same period of the previous year, mainly due to non-cash compensation for subsidiary CEOs.
Other Expenses: The decision to cease Canonic's operations resulted in recording other expenses of approximately $0.5 million, mainly due to impairment of fixed assets.
Operating Loss: The operating loss for the first quarter of 2024 was approximately $4.1 million, a decrease from $6.8 million in the same period of the previous year, mainly due to increased revenues.
Financing Income: Financing income net for the first quarter of 2024 was $241 thousand, compared to financing expenses net of $230 thousand in the same period of the previous year. This improvement was primarily due to increased interest income and revaluation of convertible SAFE.
Net Loss: The net loss for the first quarter of 2024 was approximately $3.8 million, compared to approximately $7.0 million in the same period last year. The $3.2 million decrease in net loss was primarily due to increased revenues and financial income, partially offset by the one-time $519 thousand other expenses related to ceasing Canonic's operations.
For the financial tables click here.
Conference Call & Webcast Details: Thursday, May 23, 2024. 9:00 AM EST 4:00 PM IDT
To join the Zoom conference, please register in advance here
Or join via audio
Or, dial: US: +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 558 8656 or +1 646 931 3860 or +1 669 444 9171 or +1 689 278 1000 or +1 719 359 4580 or +1 720 707 2699 or +1 253 205 0468
More International numbers
Webinar ID: 871 1216 5951
Webcast & Presentation link available at:
https://evogene.com/investor-relations/
midastouch017
11 months ago
Evogene - A Company With Valuable Assets Trading At Zero Enterprise Value
By Kate Hayden
Thursday, June 22, 2023 9:17 AM EDT
Introduction
Evogene is a Nasdaq and Tel Aviv listed company under the ticker EVGN. The company is both an agri-tech (agricultural technology) and bio-tech company with a computational predictive biological platform technology, which supports three AI tech-engines (GeneRator AI, ChemPass AI & MicroBoost AI). The technology is leveraged to five relatively early-stage subsidiaries: three of which have reached the commercialization phase and have sales.
There have been a number of articles on TalkMarkets describing the overall company and its structure, (see here and here), as well as some excellently detailed analysis and overview on Evogene and each of its subsidiaries by investor, Stephen Goldman on Seeking Alpha. This article will focus primarily on the valuation of the business, without going into detail into what those subsidiaries actually do.
The company has a market cap of around $30 million (at a share price of $0.72), and has been trading at around those same levels since mid 2022, following a very sharp 90%+ fall from its peak of around $9.50 in February 2021. At the same time, the company had $29 million in consolidated cash as of Q1-end*.
*As a side note, we note this is today a conservative estimate of cash, since following Q1, Evogene received a $10 million investment in Biomica; an EU grant of over $1 million to develop drought resistant crops; revenues from Lavie Bio’s seed treatment which peaks in spring-time, and is set to receive a further $9 million in the near-term from an oil giant for castor seeds for biofuel, less ongoing cash burn.
The company was a key holding in Cathie Wood’s ARK Genomic Revolution ETF fund (ARKG) back in 2021. However, as ARK’s funds grew significantly, ARK exited most of their smaller holdings including Evogene, and combined with the 2021-2022 market crash, the company has since taken the hit to its share price, despite prospects significantly improving versus its position in 2021-2022.
Today, with effectively zero (or lower) enterprise value, when purchasing the shares, investors today are basically buying that same amount in cash, getting all the AI technology assets contained within the company and the value in the subsidiaries for free.
This is extremely pessimistic from the markets perspective.
Valuation of the subsidiaries
For one, the subsidiaries do have real value, ascribed by external investment from professional funds. Two of the subsidiaries have seen recent venture capital (VC) investment from serious institutions, providing external valuation.
Biomica (Evogene’s early stage bio-tech company focused on the human microbiome) of which 76% is now held by Evogene, saw an investment of $10 million, at a valuation of $50 million by Chinese VC, Shanghai Healthcare Capital, implying a value of $38 million to Evogene. This itself is above the market valuation of Evogene.
Lavie Bio of which Evogene currently owns 70% and Corteva (NYSE: CTVA) owns the balance, is an early-stage agri-tech company which already has growing sales. They closed a SAFE (simple agreement for future equity) investment round at the end of last year bringing in $10 million from Israel Chemicals (NYSE: ICL). While SAFE investments mean valuation, and ownership adjustments, are not fixed until a later date, we do not believe the future round will be at a valuation below what Corteva paid in 2019 when the company was pre-sales: $27 million investment for 30%, implying a valuation of $90 million. Assuming ICL invests $10 million at a $90 million valuation, representing 11% ownership for ICL, Evogene’s ownership would drop to 63% of a $90 million company, whose value to Evogene would be $57 million - almost 2X Evogene’s valuation.
Canonic, a medical cannabis company of which Evogene holds 100%, has small but growing sales in Israel and has signed various royalty license agreements for its genetic varieties. It is noted that these license agreements are basically costless to Evogene and offer Canonic 100% gross margin. Given the weakness in the cannabis space globally, the company has stated they are looking for strategic alternatives for Canonic. While we can assume the valuation of the company is not significant given the unattractive cannabis market, given existing and growing sales plus its ability to gain royalties at almost 100% margin by licensing out existing IP - its genetic varieties - and its initial success in doing so, so far, the value is clearly above zero.
AgPlenus, developing crop protection products, of which Evogene owns 98%, is also at an early stage. In the conference call, the Evogene CEO stated that, “Major ag-chemical companies such as BASF, Bayer, Corteva, and Syngenta dominate today's crop protection industry. Still, they look to smaller ag-tech companies like AgPlenus to develop new minor molecule candidates, and AgPlenus is exploring partnerships with these major industry players.” The company is working with Corteva (also mentioned earlier as an owner and partner in Lavie Bio). The company has a pipeline, has solid partnerships and there is definitely strong potential here. Again the valuation is clearly above and probably well above zero.
Casterra, selling genetically advanced castor seeds for oil production of which Evogene holds 100%, is likely the subsidiary with the highest potential for significant value creation in the short-term. Casterra’s castor seed varieties used for bio-fuel production are designed to maximize water efficiency, provide drought resistance, and enable cultivation on marginal, non-arable land. Casterra offers a sustainable production process for growing biofuels, which oil majors can leverage.
This is why Casterra has attracted the attention of a major oil and gas company, looking to build its expertise in the biofuel sector in Africa. It just announced a significant $9 million initial purchase order for Castor seeds, following an earlier order in January (for an undisclosed amount). $9 million for an oil major, is clearly just a ‘drop in the ocean’ and the future potential is likely in the tens of millions, if not hundreds or more. Beyond that, we think the market itself is very interesting and will grow as the oil companies look to offer more sustainable forms of fuel, which castor grown fuel indeed is.
While Casterra has never raised external capital, it has no external valuation. However, 2023 revenues at Casterra will be relatively high versus all other subsidiaries in Evogene, and likely to further grow significantly in 2024 and 2025. We do not know what the gross margin on Casterra’s seed development is, but the majority of the value is tied up in the IP and genetic makeup of the seeds, and we should assume similar margins to other such biotech products, which would be in the 80-90% range. The operating expense footprint at the subsidiary is low with only a handful of employees, and we would estimate with 2023 revenues of over $9 million, the company is highly profitable.
There are other biofuel companies which we can use as a guide to valuation: according to Lake Street’s research on Evogene, CoverCress was purchased by Bayer and Chevron for over $200 million, and S&W-seeds has a biofuel JV valued at $150 million, investments made at both companies at the pre-revenue stage. We would assume that a revenue generating and profitable biofuel company, with very significant growth potential, should be at least within this range.
To summarize, while the market is valuing Evogene at its cash level at around $30 million, the conservative value of Evogene of its subsidiaries: net cash above $29m; Biomica at $38m; Lavie Bio at $57m; Canonic above $0m; AgPlanus well above $0m, and Casterra at least $100m; yields a value of well above $224 million, or well over $5 per share, versus around $0.73 today, and upside of well above 6X.
Evogene’s technology
And all that does not take into account Evogene’s technology. Evogene is a 20 year old company, and over that time primarily focused on research and development (R&D). In 2022, it spent $21 million in R&D, and extrapolating out to its founding, we can assume that over those two decades, Evogene has likely invested in the region of $400 million into R&D, developing the technology at its subsidiaries and into its own technology.
Evogene itself has a technology platform, which all its subsidiaries can leverage, called the Computational Predictive Biology platform or CPB, which it provides to its subsidiaries to direct and accelerate the discovery and development of their life-science-based products.
It consists of three artificial intelligence engines which use a large amount of either microbial, molecular or genetic data to train and ultimately discover new potential products and applications, called MicroBoost AI, ChemPass AI, and GeneRator AI. More information on these engines can be found within Evogene’s presentations on its investor relations website.
There are no external metrics on which to value Evogene’s technology, but given the significant amount spent over decades, Evogene’s partnerships with leading ag-companies such as Corteva and ICL, and its revenue generating subsidiaries, there is clear value - and probably very significant value - here.
Conclusion
Pessimists might argue that the reason for today’s sub $1 valuation, and trading at or below cash, is the expectation that the company will spend down its money without an exit to boost its capital. Recent news: Casterra’s $9m sale of seeds, $10m investment in Biomica, $10m SAFE investment in Lavie Bio, and ~$1.5m Horizon grant, as well as two revenue generating subsidiaries means that Evogene’s cash is actually increasing, and this risk today, is becoming increasingly remote.
From a sum-of-parts perspective, Evogene is likely worth many multiples of its market valuation today. From a conservative perspective, we calculate it is worth well above $5, without ascribing any value to Evogene’s technology. This represents at least a 6X upside from today’s share price.
When this will eventually come, nobody knows, but the recent news at Casterra represents a very significant catalyst and ultimately value is hard to keep locked up forever.
midastouch017
2 years ago
Evogene Reports Second Quarter 2022 Financial Results
https://finance.yahoo.com/news/evogene-reports-second-quarter-2022-110000318.html
Conference call and webcast: today, August 31, 2022, 9:00 am ET
REHOVOT, Israel, Aug. 31, 2022 /PRNewswire/ -- Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), a leading computational biology company targeting to revolutionize life-science product discovery and development across multiple market segments, announced today its financial results for the second quarter ended June 30, 2022.
Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, stated, "We are very pleased with the two recent important developments that have taken place at the Evogene group: namely, the strategic collaboration and $10 million investment by ICL, a leading global specialty minerals company, into our subsidiary, Lavie Bio; as well as the launch of the Phase I first in human clinical trial, by our subsidiary, Biomica."
"The strategic collaboration between ICL and Lavie Bio and $10 million investment, combines Lavie Bio's ag-biologicals expertise, built on Evogene's Microboost AI tech engine, with ICL's fertilizer experience, enabling the development of a pipeline of innovative bio-stimulant products for agriculture. Especially in a time of food scarcity, high prices, and macroeconomic uncertainty, Lavie Bio and ICL's shared vision is to enhance global food quality, agricultural sustainability, and increased productivity. ICL will join Corteva, a major U.S. agricultural chemical and seed company, as well as Evogene, as a new shareholder of Lavie Bio and I am very proud that these two agricultural giants have a strong interest in what Evogene has built."
"From Evogene's standpoint, this investment in our subsidiary Lavie Bio, is an additional key milestone that demonstrates the power of our business model, whereby we are leveraging the value of our tech engines through dedicated subsidiaries. It shows that our hard work in building, investing in and strengthening our subsidiaries, all of which are leveraging our underlying computational predictive biological tech engines, is the right strategy and bears fruit."
Continued Mr. Haviv, "The second important development was the launch by Biomica of its phase I clinical trial and the announcement that the first patient was dosed in its Phase I clinical trial for its microbiome-based immuno-oncology drug candidate, BMC128. The drug candidate is a consortium of microbes, which Biomica selected through a microbiome analysis via our MicroBoost AI tech engine."
"While Evogene has traditionally leveraged its platform and AI technology engines towards agriculture, Biomica is proof that we are uniquely positioned to play an important role in human health and is strong validation that our technology can be leveraged across multiple and massive industries."
"Finally, we continued to strengthen our management team, recently adding Eyal Ronen, as Executive Vice President of Business Development bringing us over 20 years of extensive business development experience with biotech companies. Eyal's focus is to create and bring us additional value by building new partnerships or forming new subsidiaries, leveraging our technology engines and expanding our activities into new areas. I strongly believe that Evogene has significant untapped potential in its technology engines, and Eyal will focus on realizing some of that value."
Mr. Haviv added, "Evogene today is at a key inflection point, whereby we are meeting critical milestones and the inherent value of our subsidiaries is becoming increasingly obvious. Evogene's goal in the near term, is to continue to bring high value-adding partners and investors at the subsidiary level, who understand and can value the potential from the products that our subsidiaries are developing. This we believe will demonstrate in a very public way, the significant untapped value contained within our activities."
"Our target is that each subsidiary will have its own financial resources to support its activities until its success, while we at Evogene, in addition to being a major shareholder, continue to play a major role in maintaining and building their competitive advantage through our tech-engines."
"In parallel, we are targeting and exploring the potential to establish new activities that can benefit from our technology. This is the main mission of our new EVP of Business Development, Eyal Ronen, and we are already starting to see some of his positive impact," concluded Mr. Haviv.
Consolidated Financial Results Summary
Cash position: Evogene continues to maintain a solid financial position for its activities with approximately $35.3 million in consolidated cash, cash related accounts and marketable securities as of June 30, 2022. Approximately $3.6 million of Evogene's consolidated cash is appropriated to its subsidiary, Lavie Bio. The Company does not have bank debt. It is noted that these amounts do not include the recent $10 million investment of ICL in Lavie Bio, which was fully received in August 2022 and will be reflected in the financial statements of the Company for the third quarter.
During the second quarter of 2022, the consolidated cash usage was approximately $9.3 million, or approximately $6.4 million, excluding Lavie Bio. Out of the $9.3 million, $1.7 million is a non-cash charge related to foreign exchange expenses due to US Dollar and New Israeli Shekel exchange rate differences and a decrease in the market value of marketable securities on Evogene's balance sheet.
As previously stated, Evogene's full year net cash burn rate, excluding exchange rate impacts in 2022, is expected to be in the range of $26-28 million including Lavie Bio and $18-20 million excluding Lavie Bio, which manages its own cash position.
Revenues: Revenues for the second quarter were $312 thousand, in comparison to $135 thousand in the same period the previous year. Revenues were primarily due to the initial sales of Lavie Bio's Thrivus product (previously branded as Result) and sales of Canonic products in the Israeli market.
R&D expenses for the quarter, which are reported net of non-refundable grants received, were $5.4 million, in comparison to $5.0 million in the same period the previous year. The increase in R&D expenses were primarily due to:
Biomica's ongoing phase I trial of its first-in-human proof-of-concept study in its immuno-oncology program; and
Lavie Bio's activities supporting the production and commercialization of its inoculant product;
Business Development expenses were approximately $1.0 million for the second quarter of 2022, in comparison to $0.7 million in the same period the previous year. The increase in the Business Development expenses was primarily due to recruitment of business development personnel supporting the commercialization activities of Evogene's subsidiaries.
General and Administrative expenses remained stable, and for the second quarter of 2022 were $1.7 million, in comparison to $1.8 million in the same period in the previous year.
Operating loss: Operating loss for the second quarter of 2022 was $8.0 million in comparison to $7.4 million in the same period in the previous year.
Financing expenses for the second quarter of 2022 were $1.7 million in comparison to financing income of $0.6 million in the same period in the previous year. The increase in financing expenses was mainly due to the US Dollar and New Israeli Shekel exchange rate differences between periods and a decrease in marketable securities value as mentioned above.
Net loss: The net loss for the second quarter of 2022 was $9.8 million in comparison to a net loss of $6.9 million in the same period in the previous year. The increase in net loss was mainly due to the financing expenses as described above.
Conference Call & Webcast Details:
Date: August 31, 2022
Time: 9:00 am ET; 16:00 Israel time
Dial-in numbers:1-888-281-1167 toll free from the United States, or +972-3-918-0609 internationally
Webcast & Presentation link available at:
https://www.evogene.com/investor-relations/presentations-and-webcasts/
The Company's investor presentation can be viewed at the above link, which is in the investor relations section of the company website.
Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call.
To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible following the call for three days. An archive of the webcast will be available on the Company's website
About Evogene Ltd.:
Evogene (NASDAQ: EVGN, TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science based products by utilizing cutting edge technologies to increase probability of success while reducing development time and cost. Evogene established three unique technological engines – MicroBoost AI, ChemPass AI and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each technological engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI). Evogene uses its technological engines to develop products through subsidiaries and with strategic partners. Currently, Evogene's main subsidiaries utilize the technological engines to develop human microbiome-based therapeutics by Biomica Ltd., medical cannabis products by Canonic Ltd., ag-chemicals by Ag Plenus Ltd. and ag-biologicals by Lavie Bio Ltd. For more information, please visit: www.evogene.com.
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3 years ago
Evogene Ltd. (EVGN) CEO Ofer Haviv on Q2 2021 Results - Earnings Call Transcript
Aug. 11, 2021 1:55 PM ETEvogene Ltd. (EVGN)
Evogene Ltd. (EVGN) Q2 2021 Results Conference Call August 11, 2021 9:00 AM ET
Company Participants
Ofer Haviv – President and Chief Executive Officer
Dorit Kreiner – Chief Financial Officer
Sarit Firon – Chairperson of the Board
Conference Call Participants
Kristen Kluska – Cantor Fitzgerald
Ben Klieve – Lake Street
Nathan Weinstein – Aegis Capital
Geoff Gilbert – Inukshuk
Kenny Green – Edison Group
Operator
Ladies and gentlemen, thank you for standing by. Welcome to Evogene's Second Quarter 2021 Results Conference Call.
All participants are at present, in a listen-only mode. Following management's formal presentation, instructions will be given for the question-and-answer session. [Operator instructions] As a reminder, this conference is being recorded, August 11th, 2021. 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, risks, and uncertainties regarding business strategy, operations, and future performance and results of Evogene.
I encourage you to review Evogene's filings with the U.S. Securities and Exchange Commission and read the note regarding forward-looking statements in today's earnings release, which states that statements made in the earnings release and in a similar way on this earnings conference call that is not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For example, Evogene is using forward-looking statements in this call when it discusses its expected halves-to-value creation and its belief that turning one or more of its subsidiaries into public companies will be beneficial to its shareholders.
Evogene and its subsidiaries expected trials, studies, product advancements, commercialization, launches, pipelines, milestones, potential collaborations, cash usage, and other plans for 2021 and 2022, the potential advantages of its technology, and its anticipated entry into new fields of activity. All forward-looking statements made herein speak only as of the date of the announcement of results. Many of the factors that impact whether forward-looking statements will come true are beyond the control of Evogene and may cause actual results to differ materially from anticipated results.
Evogene is under no obligation to update publicly or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as otherwise required by law. We expressly disclaim any obligation to do so. More detailed information about the risk factors, potentially adversely impacting our performance, can be found in our reports filed with the U.S. Securities and Exchange Commission. That said, I would now like to turn the call over to Ofer Haviv, Evogene 's CEO. Ofer, please go ahead.
Ofer Haviv
Thank you, and good day, everyone. We appreciate your joining us today for our second quarter 2021 conference call. Joining me today are, Ms. Sarit Firon, Evogene 's new Chairperson, and Ms. Dorit Kreiner, our CFO. Sarit will start the conference call with a short introduction and provide her vision of the Evogene group. I will then discuss our plan for unlocking the value of our subsidiaries and provide an overview of our recent achievements.
Dorit will summarize Evogene's financial results for the second quarter and the first half of 2021. We will then open the call for your questions. Before I hand over to Sarit, our new Chairperson, I would like to address Martin Gerstel, our former Chairman. As you know, in June this year, after two decades of chairing Evogene since our founding, Martin felt he should take a well-deserved retirement from Evogene.
I would like to take this opportunity to thank Martin wholeheartedly for his constant leadership and vision as our Chairperson and his ongoing invaluable contribution to Evogene 's development. And on a personal note, I would also like to thank him for his guidance and support of me in the role of a CEO. I would like to welcome Sarit as Evogene's new Chairperson. Sarit has been a highly effective member of our board since 2016 and knows Evogene and its subsidiaries very well, which will ensure a smooth transition into her new role as Chairperson of the Board.
Sarit brings to Evogene more than 27 years of global investments and operational experience across Silicon Valley, New York, and Tel Aviv. She's one of Israel's most accomplished investors and is well known for helping to build companies from their early-stage to successful IPO s and acquisitions. Sarit currently serves as a Managing Partner of the Team Eight Group and Managing Partner of the Team Eight Capital, the investment arm of the group. She has held numerous operational and leadership roles, serving as chairperson and board member, CEO, and CFO at prominent high-tech companies.
I cannot think of anyone better suited to assume the role of a chairperson at present and I'm truly excited that she has agreed to this role. On behalf of all the management, employees, and investors in Evogene, I would like to wish her much success. Sarit, please.
Sarit Firon
Thank you, Ofer, for your warm introduction. I'm honored to have the opportunity to lead Evogene as its new Chairperson. Evogene is an extraordinary Company with highly differentiated predictive discovery and development capabilities, and an impressive product pipeline suite subsidiary.
I look forward to working with my fellow directors, Ofer and Dorit Kreiner, senior management team. Together, we will take Evogene and its subsidiaries to the next level in value creation and subsequently gain recognition by the capital markets. I would like to join Ofer in thanking Martin for his significant contribution made to Evogene since its inception.
Martin should be extremely proud of Evogene 's journey from its establishment to where we are today. He's one of the key leaders that build the foundation for a promising future ahead. Our vision is to change the way life science companies are developing their products to substantially increase their probability of success and at the same time, reducing the time and cost of life-science product development.
To execute this vision, our strategy is to focus on utilizing the most advanced computational Biology with development. Over the last 2 decades, Evogene has developed a unique Computational Predictive Biology platform and an investment of tens of millions of dollars incorporating distinct scientific understanding, together with big data and artificial intelligence. We've then established subsidiaries, who had developed a strong product pipeline very rapidly, by utilizing these advanced technologies.
And now, our subsidiaries are reaching the level of maturity, with their underlying value is becoming a current. As Ofer stated in his introduction, throughout my career, I've taken companies to the next level, by realizing their value potential to IPO acquisition, or other financial transactions.
I'm excited to bring this experience to Evogene and its subsidiaries, to help in unlocking the inherent value in each subsidiary. We will ensure that each subsidiary is focused on its key strength. This will enable us to realize its unique value. Also, we'll elaborate on our strategy later in the call. So now, I would like to hand it over to Ofer, and I look forward to continually updating you about our progress and achievements in the future. Ofer, back to you.
Ofer Haviv
Thank you, Sarit. My remarks in today's call will focus on our strategy for unlocking the value created within the Evogene subsidiaries for the benefit of Evogene shareholders. In addition, I will describe the major achievements of our subsidiaries over the past six months, and an outlook for their continued operations this year.
To set the common ground for our discussion, I would like to recap the main topic I covered in our previous quarter's call. First, our broadly applicable Computational Predictive Biology platform, the CPB, and the three tech engines relying on this platform: MicroBoost AI, ChemPass AI, and GeneRator AI.
As stated, many times, we believe this technology engine provides a significant competitive advantage in the discovery and development of life-science-based products in multiple industries. Second, our proven ability to create subsidiaries in multiple life-science-based fields by utilizing the CPB platform and the SwedeTech engines with each subsidiary demonstrating its ability to rapidly discover and develop very promising product pipelines.
Lastly, I stated our intention to continue to initiate new activities in additional life-science-based fields. Moving now to what I would like to focus on today, that is, how do we intend to provide financial benefit to the Evogene shareholders in the near term for our subsidiaries? Our starting point is that each of our subsidiaries contains a substantial internal value that is created through its rapidly developing pipeline and the use of Evogene 's unique technology. I would like to elaborate.
As you know, investing in innovative lifestyle's best companies, such as those within the Evogene group, presents both financial advantage and risk for investors. The primary advantage is that, in general, its successful, innovative life-science-based product can be very profitable. In addition, and very importantly for investors, innovative companies with promising life-science-based products in their pipeline as Evogene 's subsidiaries, can have significant market value long before the products are commercialized.
On the other hand, the primary risk in investing in innovative life science-based companies is that such products typically have very high failure rates. Furthermore, those that are successful generally take a relatively long time to be commercialized. We believe that Evogene 's unique technology that is valuable to each of our subsidiaries for their field of focus, provides a substantial advantage concerning dealing with those challenges of high failure rate and time-to-market. As demonstrated in our subsidiary's recovery and early development pipelines.
So if our subsidiaries enjoyed the benefit of their rapidly developing pipeline, and their utilization of Evogene 's technology is expected to reduce time-to-market and increase the probability of success, why isn't our subsidiaries' potential fully reflected in Evogene 's market value? We think that Evogene group's current structure of a public Company with a variety of privately-held subsidiaries operating in different fields of activity creates difficulty for the capital markets to properly value each subsidiary.
Therefore, we believe that if our subsidiaries were valued separately, it would result in a far greater combined market value for the Evogene group. Based on these assumptions, our general strategy for unlocking the value of our subsidiaries for the benefit of Evogene 's shareholders is to facilitate an independent valuation of each of our subsidiaries, regardless of Evogene or the other subsidiaries and we are currently exploring ways to achieving these targets.
We believe that one way to achieve this in a manner that will be beneficial to our shareholders is to turn 1 or more of our subsidiaries into a public Company, that will trade independently of Evogene. In this regard, [Indiscernable] path that we are exploring is the distribution of a portion of Evogene's holding in one or more of those subsidiaries to our shareholders. Of course, the decision if, when, and how to spin off a subsidiary Company will depend on many considerations, including market conditions, the subsidiary financial needs, partner maturity, valuation, applicable regulations, etc.
However, as stated, our current intent is to facilitate an independent valuation of each of our subsidiaries in the near term and to do so in a manner that provides financial benefits to the Evogene shareholders. We look forward to providing additional information regarding the implementation of this very exciting strategy. I would now like to move on to an overview of our recent achievements.
I am pleased to report that both Evogene and our subsidiaries have been progressing. And I would like to highlight the following activities and advancements all made in the first half of 2021 and what can be expected for the second half of 2021. We will start with Biomica, focusing on the development of drugs based on the human microbiome utilizing Evogene's MicroBoost AI tech engine. In the first half of 2021, Biomica has continued to preparations for the initiations of its first-in-man proof-of-concept study in the immuno-oncology program and continued with its pre-clinical programs for gut disorders.
2 important announcements have been released by Biomica during the first half of the year. In Q1, Biomica released impressive pre-clinical data for its rationally-designed microbiome therapeutic candidate BMC128 in immuno-oncology. BMC 128 in combination with immune checkpoint inhibitors, ICI, in the breast cancer mouse model, demonstrated to announce anti-tumor activity as manifested in an increase of almost 50% in objective response rate in comparison to ICI alone.
In Q2, Biomica reported the BMC128 has significantly increased anti-tumor activity, in combination with ICI, but this time in melanoma. These positive pre-clinical results could indicate the potential BMC128 to become best-in-class in the treatment of various types of solid cancer tumors and support the validation of the Biomica computational-based drug designs approach.
As for the second half of 2021, Biomica expects to initiate its first-in-human proof-of-concept clinical trial in Israel later this year in its immuno-oncology program. As preparation for this milestone, Biomica initiated the scale-up processes and move to GMP production of its drug candidate, as well as submitted the relevant documents for regulatory approval. We also expect to receive clinical results for the IBD program.
Let's move to the second Company in the field of human health, Canonical. Canonic's vision is to become a world leader in developing and commercializing effective, precise, and stable medical cannabis products based on novel cannabis varieties.
To achieve this vision, Canonic utilized Evogene 's GeneRator AI tech engine. With eyes on the global market, the Company is making its first steps in the Israeli market with impressive progress indicating big potential. In the first half of this year, Canonic invest significant resources to establish its production and marketing infrastructure in preparation for product launch in Israel in 2022 as planned. Two important announcements have been released by Canonic during the first half of the year.
The first was signing a production and distributions agreement in anticipation of the commercialization of its first product in the MetaYield program in 2022. The second was announced an agreement for joint development of novel medical cannabis products with Cannbit Tikun Olam. This is part of Canonic's Precise Products Program. During the second half of 2021, Canonic will continue with preparation towards the selection and commercialization of its first-generation MetaYield Premium Products and will focus its research and development efforts on next-generation Metayield varieties.
In addition, Canonic expects to achieve its milestone for the Precise Product Program and identify a line that exhibits distinct effects in model systems for reducing pain or inflammation. Now, I will move to AgPlenus, our subsidiary in the Ag industry segments. genus ' mission is to develop and commercialize novel and safe crop protection products to control pests and produce higher yields, supporting the growing demand for high-quality food. To achieve this vision, AgPlenus utilized Evogene 's ChemPass AI tech engine.
During the first half of 2021, AgPlenus focused on 2 important activities; making considerable progress in its collaboration with Corteva to develop novel herbicides, and continuing to develop and test additional compounds in its internal herbicide program. AgPlenus recently announced it achieved positive results in a proof-of-concept experiment developing resistance trait for herbicide candidate targeting APTH1, AgPlenus Target Herbicide 1, its leading novel mode of action for herbicide in its internal program.
This POC demonstrates the ability to generate resistance traits in target crops to herbicide targeting the new mode of action, APTH1. This is a significant milestone as a resistant trait and able farmers to kill weeds without damaging the commercial crop. In the second half of 2021, AgPlenus will focus on three main targets. Advancing its strategic collaboration with Corteva, expanding its product pipeline to reach the lead phase for an additional candidate targeting APTH1, and lastly, advancing commercialization effort for APTH1.
Our second subsidiary to the Ag industry is Lavie Bio. Lavie Bio's mission is to improve food quality, sustainability, and agriculture productivity through microbiome-based and biological technology and products. To achieve this mission, Lavie Bio utilized Evogene 's MicroBoost AI tech engine.
The main focus of the Company in the first half of 2021 has been on advancing its product pipeline. At the core of its activity are the LAV211, biostimulant for spring wheat as the first target crop, and LAV311 /312, bio fungicide for grapes as its first target crop. We will lead biostimulant, LAV211, which is expected to be launched in 2022.
Commercial trials are continuing and there has been further advancement of formulation and product readiness. As part of the Company's preparation for commercialization, its commercial team expanded with the appointment of a VP commercial, building the path to market in North America, the initial target market for our biostimulants.
For the next 6 months, Lavie Bio will continue to prepare for the expected lead biostimulants LAV211 commercial launch in 2022, which we anticipate will include an agreement with a potential distribution partner. About our leader bio fungicide LAV311, LAV312, we are advancing an additional season of a multi-location field trial in Europe and the U.S., which are focused on advanced validations of an optimized and improved generation or formulation. In addition, trials for expanding the use of the bio fungicide into additional potential and lucrative crops are being conducted.
Concerning LAV311, LAV312, our lead bio fungicide, we expect to finalize the formulation protocol and initiate data generation for regulatory filing in 2022. Last but not least is our feed rate division. It aims to develop high-quality food based on improved seeds with high commercial value, leveraging computational genomics and biology. To achieve its targets, the division utilized the GeneRator AI tech engine.
In the first half of 2021, the focus of the seed trade division was on developing technology for seed improvement using genome-editing technologies, enabling deletion or modification of specific genomic regions, in the genome of the crop, without inserting foreign DNA into the plant. During this period, [Indiscernable] division completed the establishment of the first version of the computational and biological genome editing platform for the utilization of CRISPR technology in different crops, currently focusing on soybean and tomato.
In the frame of the division, genome-editing activity, Evogene participates in the CRISPR iron consortium with Dr. Ayalew Manuel (ph), Evogene 's VP in New Directions serving as the President of the Consortium. We were very pleased to announce at the beginning of 2021 the completion by this Consortium of the first version of the artificial intelligence-driven platform for genome editing.
During the second half of the year, the sea trade division aims to leverage the CRISPR technology for the development of disease-tolerant and high-quality trade-in soybean and tomato lines. Another important project the division is involved in targets improving the carbon stimulation by plants, reducing carbon pollution, which aims to slow the damage of global warming.
In this project, which is funded by the European Horizon 2020 program, our seed division collaborates with world-leading academic institutions, such as Max Planck Institute, the [Indiscernable] Institute, and Imperial College London. With that, I would now like to turn the call over to Dorit Kreiner, our CFO. Dorit?
Dorit Kreiner
Thank you, Ofer. I will begin by reviewing our cash balance. Evogene continues to maintain a strong financial position for its activities with approximately $65.4 million in consolidated cash, cash-related accounts, bank deposits, and marketable securities as of June 30, 2021. Approximately $10.6 million of Evogene's consolidated cash is appropriated to its subsidiary Lavie Bio. During the first half of 2021, the consolidated cash usage was approximately 11.3 million, or 8.9 million if excluding Lavie Bio.
These sums exclude 28 million net raised to our ATM offerings and exclude 0.5 million for sales for the micro size of options. During the second quarter, the consolidated cash usage was approximately 5.7 million, or 4.5 million if excluding Lavie Bio. These sums exclude 0.8 million net rates while the current ATM is detailed below. During the first half of 2021, and in particular, during the second quarter, the burn rate was higher than the same period in 2020 for the following reasons.
First, during the second quarter of 2020, the burn rate was unusually low due to certain measures the Company took to mitigate the impact of the COVID -19 pandemic on the Company, including a temporary reduction in salary-based expenditure and a cutback in secondary activities. Second, during the second quarter of 2021, Evogene 's subsidiary increased their investment substantially in advancing their product development pipelines, including; Biomica continued preparations [Indiscernable] of first-in-human proof-of-concept study in the immuno-oncology program later this year.
Lavie Bio's activities towards the expected commercialization launch of its lead biostimulant in 2022. and Canonic's establishment of its production and marketing infrastructure in preparation for expected product launch in Israel in 2022. We continue to estimate that our cash usage for the full year of 2021 will be within the anticipated range of 20 million to 22 million. These guidelines exclude cash usage of our subsidiary Lavie Bio.
Under our current ATM, which we announced in March 2021, we raised 0.8 million net with a weighted average price of approximately $4.7 per ordinary share. The Company does not have bank debt. Let's now turn to the statement of operation. Revenues for the second quarter of 2021 were 0.1 million in comparison to 0.3 million in the same period the previous year.
R&D expenses for the second quarter of 2021, which are reported net [Indiscernable] with 5.0 million in comparison to 3.9 million in the second quarter of 2020. The increase in R&D expenses in this quarter was mainly attributed to product development activities of the Company and its subsidiaries, as mentioned above.
Business development expenses were approximately 0.7 million for the second quarter of 2021 in comparison to 0.5 million in the second quarter of 2020. The increase is attributed mainly due to Canonic's and Lavie's preparation towards the expected launch of their first products in 2022. General and administrative expenses for the second quarter of 2021 were 1.8 million in comparison to 1.1 million in the second quarter of 2020. The increase is attributed due to the increase in the cost of directors' and officers' insurance. Operating loss for the second quarter of 2021 was 7.4 million in comparison to 5.2 million in the second quarter of 2020. The loss for the second quarter of 2021 was 6.9 million in comparison to a loss of 4.8 million during the second quarter of 2020. With that said, we would now like to open up the call for any questions you may have. Operator?
Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. Ofer Haviv and Dorit Kreiner will be available to take your questions. [Operator Instructions] Your questions will be polled in the order they are received. Please stand by while we poll for your questions. The first question is from Kristen Kluska of Cantor Fitzgerald. Please go ahead.
Kristen Kluska
Hi. Good morning and good afternoon. Thank you for taking my question. So I'll start with one big picture question here. As you're nearing potential commercialization for your first 2 programs next year, MetaYield and LAV211, could you remind us how you view the initial market opportunities? And I would imagine that most of the customers, you or a partner would be looking to get in front of would-be perhaps looking to make a switch from another product that they currently use, so what are your view as the main selling points or advantages to get there?
Ofer Haviv
Hi, this is Ofer. Thank you for your question. We didn't disclose the specific numbers or guidelines with respect to potential revenue over the first product. But what I can share is that with respect to Lavie Bio's first product, we are talking now with a few local distributors that are going to -- will be responsible for the sales of our product in the target location. At least for the first year, we're not expecting to -- something significant.
The expectation is just from the second year then the numbers will be more material. And what is really nice is that the distributors we are working with them are the one that we are also using them to conduct a field trial experiment. They are the ones that really see the performance in their field. They are the ones that collect the data. In a way, they are our best ambassadors for the quality of our product.
It's not that we supply them the data, they actually generate together with us the data. And what is really nice, and this is something that we disclosed already, is that the performance of our products compared to existing commercial available product is better. So I think that our strength with the yield improvement, and compared to the competitor, this will be the key message that we are going to use in order to promote our products.
With respect to Canonic, over here, we are expecting to reach the market using a local distributor that we already spent time with them on the agreement. And we are expecting to reach the customers next year through a local pharmacy, pharmacy on the internet, and we are organizing a campaign -- a marketing campaign to drive the sales of our products for next year.
One thing we're planning to do is that our statement why to buy the able -- the economic product and not the -- our competitive product is the quality. And the quality will be based on the? cannabinoid? profile and how the crop looks in the -- protective of the consumer, the patients. What we learn is that the way that the flowers look is very important for the consumers, and our variety is showing a very high rate in this parameter.
During the growing season's selection, we brought to our farm potential customers, people that they are buying canna -- medical cannabis products. We show them our variety and we use their recommendation as part of the breeding process, as part of the selection process. And we feel that we have the type of product that will fall into the premium category. And this will be our main statement why our products are more suitable to the needs of the potential customers.
Kristen Kluska
Thank you. And then in terms of your announcement this morning regarding the strategy of potentially exploring the idea of turning one or more subsidiaries into public companies, could you talk about the timing as to why you believe now this is something that you are looking to consider? And generally speaking, since your subsidiaries range from the early preclinical stage to near commercialization, is there a certain point you're looking to make these changes?
Ofer Haviv
I think that at least a few of our companies are really advancing nicely to commercialization, and this is Canonic and Lavie Bio, and Biomica is advancing very nicely toward the clinical trial. They're all active in very -- in very hot spaces where investors are looking for an investment opportunity. I don't think that we are planning to take all of them into the public market, but probably we will evaluate them one by one.
And when the market condition and the development on these companies when we should just state that we're seeing this would be the right time. So this is what we are planning to do. But the thing that it's -- we are getting close to this stage. And I believe that this is -- will be for the benefit of Evogene's shareholders.
We are -- we can -- instead of investing the money that there was and invest as part form and promoting our subsidiary, we can do it as the art form in a public offering, or we can do it also as part in a private firm, together with additional financial investors. I think the main target is we would like to do is to give to each subsidiary -- what we'd like to do is to give to our -- the capital market the opportunity to evaluate each activity separately because we believe that when you will accumulate all the value of each subsidiary, you will get a much higher valuation than the current valuation of Evogene.
We will start with one we see and, hopefully, we will see the positive effects on Evogene share, and then we can start to move with the other companies. This is the main purpose of this strategy. And, of course, we need to make sure that we're going -- we're doing it for the benefit of our shareholders.
And this is why we also considered that in some cases, maybe, to distribute to our shareholders ' portion from our holding in these subsidiaries so they can benefit also from the growing value of our subsidiaries. And, as I stated, the main reason is to allow the capital market to evaluate this part from the Evogene group activity in an easier way since it will be isolated from the other activity.
Kristen Kluska
Thank you. And then the last question from me. I think each of these subsidiaries, has a pipeline beyond the main programs that you've discussed, particularly as validation has been achieved, do they looked at other avenues the CPB platform could be utilized. So there's this strategy, how do you think about each potential subsidiary exploring value beyond the initial focus and pipeline, if they should have added resources on-hand? And then how do some of the other spaces that you are considering like aquaculture and drug optimization fit into this strategy as well. Thanks again.
Ofer Haviv
Okay, so first, and this is somehow related to the reason that we want to spin out our subsidiary. We have currently four subsidiaries. And each one of them has a very, very promising product pipeline. And the product pipeline of our subsidiaries contained more than what we are disclosed in our press release and through the analysts call, just because we can't cover everything.
And I think this is really far from the reason why the market cannot really evaluate each subsidiary by itself. So, yes, in addition to the product -- in addition to the lead product of each subsidiary, that I emphasized in my speech, there are more candidates which are advancing very nicely, and I would like to recommend each one of the audience to visit our subsidiary website and really look into the pipeline because there is much other promising stuff than what I'm sharing with you mainly due to time constraints.
With respect to additional activity, the license that we are giving to our subsidiary through the Evogene technology is limited to a very specific scope and this is the area that they are focusing on. They cannot use the Evogene technology outside -- of their scope. And so if Evogene -- if they want to expand their focus to an additional area, they need to ask for Evogene to extend their license. So this is with respect to the subsidiary.
But with respect to Evogene, one of the reasons that we want to spin out those subsidiaries, because then it will give us -- will allow us to focus on a new opportunity and that we -- some of them we already start to explore, you mentioned a microbiome for the aqua agriculture. This is one of the areas that we are validated. And another area is using our technology to optimize direct candidates, which are based on small molecules.
And another area to validate is maybe using the generator technology for developing alternative protein from a veggie protein to replace mammalian protein. So I think that all of this area if you really want to start to explore and to start to expand into, I it will be relatively much easier if one or more of our subsidiaries will be completely independent of Evogene with their own financial resources when we are just supporting them through our technology and being a shareholder.
And this will allow us to expand our technology and we can do it then through a separate subsidiary, or through collaboration, or we can always decide it should be part of Evogene. But, probably, I believe, it will be through a subsidiary -- new subsidiaries or through collaborations.
Kristen Kluska
Thank you.
Ofer Haviv
Thank you.
Operator
The next question is from Ben Klieve of Lake Street. Please go ahead.
Ben Klieve
All right. Thanks for taking my questions. I've got a couple, but first a clarifying question on the launch of LAV211. Is your expectation that that launch is going to be with the crop -- the spring crop that gets planted in 7, 8 months, or is the expectation that the revenue of it is going to be wait '22 for the spring wheat crop in the spring of 2023?
Ofer Haviv
We expect to be able to use it in the next season, meaning that we can recognize the revenue during 2022.
Ben Klieve
Okay. Perfect. Thank you. Then, a couple of follow-up questions and -- given that. I wasn't aware that the distributor -- that you had a distributor working with you on the field trials that you're working with now had commercialization. That's great to hear. Can you characterize -- how field trials have expanded over the past couple of years? I know you have 20 events noted in a field trial in your presentation. This year, do you have 20 more field trials ongoing with the same distributor? Any context around how that -- how those trials have evolved would be great.
Ofer Haviv
I don't have in front me the numbers of the field trial, but I can tell you -- can share with you the following. The numbers of field trials that we conduct this year, I think it's almost, again, I hope that I am not mistaken, but the thing is we've doubled the size of the previous year. It's really in a very [Indiscernable]
And this is actually very, very important because this year, it wasn't a very easy -- it's still -- it's not an easy year to measure yield improvement because of the drought that really is very severe and not helps people that are trying to evaluate the performance of our biological. But because we conducted this experience in so many places, that seeing that we have enough statistics to allow us to make the final decision should we start the -- to launch the product next year. And I think that we have many good shapes with this aspect.
Ben Klieve
Got it. And that actually would have been my next question here around the drought -- -- how pervasive the drought conditions are especially in wheat acreage. How did your -- how is your distributor thinking about launching new products next year? How are they thinking about, potentially -- just -- the market is just a mess right now in spring wheat. And so I just -- I'm curious how they're thinking about going product next year versus last year's? One has been a bit more predictable.
Ofer Haviv
I think that this is a little bit too detailed question that I will prefer that maybe the CEO of Lavie Bio will address, but I think that -- the fact that we have results based on the last three years, coming from the last three years. And in all of these years, the performance of our product was better than our competitor.
And I really hope that this year we'll succeed to generate enough statistical data to demonstrate the performance of our product. I think it will be enough information for our distributor to start their marketing of the product in the local region. Agriculture is a very -- sometimes I think that it's almost like a gamble because of the weather conditions.
And every year you need to start and hope that this year things will be according to plan. And farmers are really doing their best. So next year, it will be a new game. Hopefully, the condition will be better for farmers. And I think this will make our distributor life easier. Maybe the last thing I would like to add, we choose the specific marker we are using mainly because we felt that they can address improved yield during a rough condition.
Actually, when -- if the weather is optimal, the effect of the microbes exists but it's not -- it won't be as good as when there is some drought or maybe the weather is not optimal. If there is concern that maybe next year there will -- there might be still some drought, again, if there is no rain, nothing can grow. But if it will be something in between, the efficacy of our product is actually one of the reasons to use it in order to address this challenging weather condition.
Ben Klieve
Got you. That makes sense. One more from me and I'll get back in the queue. Over at the end of your comments, you talked about the opportunities in developing seed technologies, I think you specifically mentioned tomato and soy, but I'm sure you're working on other things as well. I'm curious if you could classify how you think about going to market with that down the road? I mean, are you looking to develop unique trades and license those trades to the big ag players? Are you looking to potentially get into -- the sale of seed? How do you really see commercializing that opportunity down the road?
Ofer Haviv
It's a very good question. This is something that we are also evaluating. And is maybe one of the reasons why our seed activity is still under a division structure and not in a separate subsidiary. I intend to believe, and this will be my recommendation that we should find the field where we are focusing on the end product while the -- our competitive advantage, given the technology level of genomics.
And I'll give you exactly where we already implemented support. This is our subsidiary Canonic, which end product is medical cannabis. But the reason that we are operating in this field is because of our strength, the technology strength, in cannabis genomics. And in this case, we can even target all of our activity to reach the end product, which is the medical cannabis itself, and not just to support the cannabis growers or a Company that is focusing on -- that they are selling the end product.
Developing the technology that we're talking about, the most advanced genome editing technology that you can think of, yes, we can then use it for the big seed companies and enter into some licensing agreement. My preference will be, let's find the type of product, and as an example, it could be a tentative protein. And the Company that we''ll establish will focus on bringing to the market the end products and the -- our competitional -- and our competitive advantage over the Company will be the technology in the level of the crop genomics.
We can think about different types of tomato, you can think about maybe bananas with high protein content or a tomato with high vitamin, I mean, but really, I would prefer to focus on the end product and using the technology as the engine to drive the success. Is this the rest of your question?
Ben Klieve
Yeah, yeah. No. That's a -- it's a -- there are multiple directions that could certainly go, and that was very helpful. We'll stay tuned there. Thanks for taking my questions. That does it for me, and I'll get back in the queue.
Ofer Haviv
Thank you very much.
Operator
The next question is from Nathan Weinstein of Aegis Capital. Please go ahead.
Nathan Weinstein
Good morning, Ofer and Dorit. Thanks for taking my questions. If we could start with Canonic and specifically the market that you'll be launching into. Maybe you could speak broadly about the medical cannabis market in Israel, how it's trending? And then have any -- have there been any impacts on the pandemic in terms of the use patterns and behaviors with medical cannabis?
Ofer Haviv
So the medical cannabis market in Israel is Growth fast. We are talking about an I think 180,000 patients if I'm not wrong and if they keep going. It's regulated and -- by the Israeli government. But maybe one of the most important things that they would like to add to the discussion is that I think last week or two weeks ago, there's government approval for cannabis companies in Israel to export their product, or their variety or their seeds abroad.
And this is the open new market abroad for Canonic and Company in the cannabis field. I think that the cannabis market in Israel is third in size in the world; the first one in the USA, then Canada, and, I think, then Israel, so it's quite a significant market. And I think that in the last press release of Canonic, there are some details inside that cover this type of question.
Nathan Weinstein
Great. Thank you. And just one follow-up for me and switching gears to Biomica with the preclinical trials for the IBD program. Are results expected in the back half of the year? Maybe you could help us think about what to expect from that and what you'll plan to share at that time.
Ofer Haviv
Okay. In this program, we select few a sets of microbe. Each one of them contains around up to 4 microbes, which -- or including the type of function that I started to believe can address the IBD disease. And we are giving those sets of microbes to [Indiscernible]. We're doing it in a very well-known lab in the U.S. and we are waiting to receive the results.
And based on these results, assuming they will be positive as we all expected, we are planning to initiate clinical trials next year in this program, and, probably, this time we're planning to do it in the States, not 100% sure that we will do it in the States, but this will be the basis for a clinical trial. And then that could be a very interesting situation for Biomica that the end of next year this Company will have 2 programs in a clinical trial that validates microbes for a very, very important entity.
Nathan Weinstein
Thank you, Ofer. I appreciate you taking my question. That was very helpful.
Ofer Haviv
Thank you.
Operator
The next question is from Geoff Gilbert of Inukshuk. Please go ahead.
Geoff Gilbert
Hello, Ofer.
Ofer Haviv
Hi.
Geoff Gilbert
Thank you for taking my call. I just wanted to echo your thanks to Martin and wish him the best in retirement. As well I would like to thank you [Indiscernable] for taking the helm and look forward to her leadership. Additionally, Ofer, I thank you for -- and we welcome your strategic announcement this morning.
I know we've talked about that in the past few years, and look forward to seeing what comes from your investigation on the values and which subsidiaries you choose. I just had a couple of book-keeping questions on cash burn, if you expect next year. I know it's always off and also dependent on whether or not the IPO happens or not.
But if -- with any of the ramping of commercialization, do you expect the cash burn to significantly increase in 2022? And additionally, you mentioned upcoming milestones in a couple of subsidiaries, whether or not those are affiliated with any cash payments from partners, or they're just advancements in the pipelines. Thank you.
Ofer Haviv
Thank you for your wording with respect to Martin. It's a reason of course makes us highly appreciate these. I definitely seeing that in marketing contribution to Evogene is tremendous. I think that parting condition to the biotech industry usually, was quite significant. And I'm really excited to work with a rate that she presents and bringing in new energy to the Company.
And I'm sure that together, we are going to take Evogene to the next phase of development. With assess -- with respect to your question, I think that people that are following Evogene know that we are very cautious with our burn rates s and usually, we are trying to make sure that it will address our targets and needs. I think that one of the reasons that we want to take also our subsidiary to the public markets is to raise the money in the private placement.
In addition, to have a separate valuation process, it also will allow those companies to prosper faster compared to them based only on Evogene funding it on its own, especially Company that such as the Biomedical. Let's say, when you're entering into the clinical trials, the amount of money you need is quite significant and yet the valuation of course jumped significantly, but also the amount of money you need to invest.
So I think that we are also taking into consideration these items in total consideration, how to prioritize, and who is the Company that we are going to take to the market first. I think that the next year, yes, their awesome milestone is expected to be achieved. Some of them start from collaborations agreement, but not all of them.
And I think that where our programs are, especially in Biomica and AgPlenus, this is 2 Company that their program out in the stage is next year, they will allow us to enter into a significant collaboration agreement that, hopefully, we can also lead to payment to Evogene and they can help us in funding the rest of our activity.
In addition, yes, Lavie Bio, maybe the numbers won't be significant and we are expecting to see higher numbers coming during 2023, but seeing that the economic, the numbers could be a little bit more immaterial and it also will inject cash to the Company to cover its expenses. Dorit, would you like to add something about it?
Dorit Kreiner
No. I think you said summarized it correctly and we will give the full estimation with respect to the burn rate in our financial for the end of the year.
Geoff Gilbert
Thank you very much for taking my question.
Ofer Haviv
Thank you.
Operator
If there are any additional questions, [Operator Instructions]. Please stand by while we poll for more questions. There are no further questions at this time. I'd like to hand over the call to Kenny Green of Edison Group to address write-in questions. Please, go ahead.
Kenny Green
Thank you, Operator. We've had a lot of writing questions, but most of them have been answered over the course of the call. One question we haven't addressed is about CRISPR. What is Evogene's direction with CRISPR through the consortium or independently? And will we introduce it for testing in humans?
Ofer Haviv
What we are doing in CRISPR, apart from the consortium is really to improve the -- what is called the guided RNA. These are the DNA fragments that are actually responsible for where you do the modification and the DNA itself and you want to do the modification in the specific place that you were targeting, and only there. And this is one of the problems that people that are using this technology are facing today, that they edit is not necessarily in the place they were targeting it and this could be a very significant problem, especially when you're using this technology for humans.
There are a few directions where you can use this technology for humans. I I think that -- I hope that our audience is familiar with what is called TIKA, where you are -- for people that suffer from cancer, you're taking out certain cells, you do some modification on the cells and then you return them back to the patient and now these T cells can fight better against cancer. This is an example where you can use genome editing in order to achieve the target. And if you -- the system you have is much more accurate and much more -- with higher efficacy, this could be quite a significant improvement. The companies operating in this field will be more than happy to put their hands on it. And this is just 1 example where you can use gene [Indiscernible] for humans and seeing that what we are trying to solve using AI technology could be very beneficial for this type of Company.
Kenny Green
Okay. Ofer, thank you very much. The rest of the questions have already been addressed throughout the call, so I will hand them back to the Operator.
Operator
Thank you. Before I ask Mr. Ofer Haviv to go ahead with his closing statement, I would like to remind participants that a replay of this call is scheduled to begin 2 hours after the conference. In the U.S., please call 1-888-3269310. In Israel, please call 0-3925-5 901. Internationally, please call 9723-9255-901. Mr. Haviv, would you like to make your concluding statement?
Ofer Haviv
Yes. Thank you. Thank you all for joining the call today. We all look forward to updating you on our progress over the next few months. Thank you. And good day.
Operator
Thank you This concludes Evogene's Second Quarter 2021 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.
midastouch017
3 years ago
Evogene Reports Second Quarter 2021 Financial Results
https://finance.yahoo.com/news/evogene-reports-second-quarter-2021-110000165.html
- Evogene's management provides update on its plans for unlocking the value of its subsidiaries
- Conference call and webcast: today, August 11, 2021, 9:00 am ET
REHOVOT, Israel, Aug. 11, 2021 /PRNewswire/ -- Evogene Ltd. (NASDAQ: EVGN) (TASE: EVGN), a leading computational biology company targeting to revolutionize life-science product discovery and development across several market segments, announced today its financial results for the first half and the second quarter of 2021, ended June 30, 2021.
Mr. Ofer Haviv, Evogene's President and Chief Executive Officer, stated, "As Evogene's subsidiaries continue to advance and mature, we feel that now is the time to introduce our strategy of how we will bring increased shareholder value in the near term from our subsidiaries.
Our starting point is that each of our subsidiaries contains substantial internal value, created through its rapidly developing pipelines powered by Evogene's unique computational predictive biology technology, the CPB platform. Our technology is available to each of our subsidiaries for their fields of focus and provides a substantial advantage for dealing with the challenges normally faced by life-science companies, such as high failure rates and long time to market.
We now see significant inherent value developing within each of our subsidiaries and believe that valued separately, these companies would result in a far greater combined market value for Evogene. We believe that one way to achieve this in a manner that will be beneficial to our shareholders is to turn one or more of our subsidiaries into public companies that will trade independently of Evogene. Among the paths that we are exploring, is the distribution of a portion of Evogene's holdings in one or more of those subsidiaries to our shareholders.
Of course, the decision if, when, and how, to spin-off a subsidiary company will depend on many considerations, including our goal of ensuring maximum value creation for shareholders as well as market conditions, the subsidiary's financial needs, pipeline maturity, valuation, applicable regulations, etc."
Concluded Mr. Haviv, "2021 is turning out to be a key strategic year for unlocking value at Evogene and its subsidiaries and I look forward to providing further updates as we advance on our strategy."
Main Activities, Advancements and Upcoming Milestones
Biomica
1st half of the year
Impressive pre-clinical data released for its microbiome therapeutic candidate BMC128 in immuno-oncology. BMC128, in combination with Immune Checkpoint Inhibitors (ICI), in a breast cancer mouse model, demonstrated pronounced anti-tumor activity as manifested in an increase of almost 50% in Objective Response Rate, in comparison to ICI alone.
Additional positive pre-clinical results for BMC128, this time in melanoma, significantly increasing anti-tumor activity in combination with ICI, which could indicate the potential of BMC128 to become a best-in-class treatment of various cancer tumors.
In preparation for its first-in-human proof-of-concept clinical trial in its immuno-oncology program, Biomica has initiated the scale-up processes, moved to GMP production of BMC128 and applied for regulatory approval.
2nd half of the year
Expect to initiate its first-in-human proof-of-concept clinical trial in its immuno-oncology program.
Expect results for the pre-clinical trial in its IBD program.
Canonic
1st half of the year
Production and distribution agreements in place for expected commercialization of first product in the MetaYield program in Israel in 2022.
Announced the joint development of novel medical cannabis products with Cannbit-Tikum Olam, as part of Canonic's Precise product program.
2nd half of the year
Continue preparation, including selection of the final varieties, towards commercialization of first generation MetaYield premium products.
Focused R&D efforts on next generation MetaYield products.
Expect to identify lines that exhibit distinct effect in model systems for reducing pain or inflammation, a milestone in the Precise product program.
AgPlenus
1st half of the year
Considerable progress made in the collaboration with Corteva to develop novel herbicides.
Continued development and testing of additional compounds in the internal herbicide program.
Positive results in a Proof-of-Concept experiment for developing a resistance trait for a herbicide candidate targeting APTH1 (AgPlenus Target Herbicide 1), its leading novel Mode-of-Action for herbicides. Results demonstrate the ability to generate in target crops a resistance trait to herbicides targeting APTH1. This is a significant milestone, as resistance traits enable farmers to kill weeds without damaging the commercial crop.
2nd half of the year
Advance strategic collaboration with Corteva.
Expand product pipeline with an aim to achieve a lead phase for additional candidates targeting APTH1.
Advance commercialization efforts for APTH1.
Lavie Bio
1st half of the year
Product pipeline advancement with LAV. 211, bio stimulant for spring wheat and LAV. 311/312 bio-fungicide for grapes, at its core.
Commercial trials for lead bio-stimulant, LAV.211, towards expected launch in 2022. Advancement of formulation and product readiness.
Commercial team expansion with the appointment of a VP Commercial, building the path to market in North America.
2nd half of the year
Continue preparations towards expected commercial launch of lead bio-stimulant LAV.211 in 2022, which is expected to include engagement with a distribution partner.
Advance an additional season of multi-location field trials in Europe and U.S. for lead bio fungicide, LAV.311/312. In addition, conduct trials for testing potential expansion of the use of this bio fungicide to additional lucrative crops.
Added Mr. Haviv, "We look forward to the continued success and developments of our subsidiaries, while implementing our very exciting strategy in the coming months."
Consolidated Financial Results Summary
Cash position: Evogene maintains a strong financial position for its activities with $65.4 million in consolidated cash, cash related accounts, bank deposits and marketable securities as of June 30, 2021, of which $10.6 million of Evogene's consolidated cash is appropriated to its subsidiary, Lavie Bio.
During the first half of 2021, the consolidated net cash usage was approximately $11.3 million, or $8.9 million, if excluding Lavie Bio. These sums exclude $28 million net raised through Evogene's at-the-market, or ATM, offerings and exclude $0.5 million in proceeds from exercise of options.
During the second quarter the consolidated cash usage, was $5.7 million, or $4.5 million, excluding Lavie Bio. These sums exclude $0.8 million net raised through the current ATM as detailed below.
During the first half of 2021 and in particular during the second quarter, the cash burn rate was higher than during the same period in 2020, for the following reasons:
- First, during the second quarter of 2020, the burn rate was relatively low due to certain measures the company took to mitigate the impact of the COVID-19 pandemic on the Company, including a temporary reduction in salary and salary-based expenditures and a cut back in secondary activities.
- Second, during the second quarter of 2021, Evogene's subsidiaries increased their investment in advancing their product development pipelines, including:
Management continues to estimate that the cash usage for the full year of 2021 will be within the anticipated range of $20-$22 million. These guidelines exclude the cash usage of Evogene's subsidiary Lavie Bio.
Under the current ATM, initiated in March 2021, Evogene raised $0.8 million net, at a weighted average price of $4.70 per share.
Research and Development ("R&D") expenses: R&D expenses for the second quarter of 2021, which are reported net of grants received, were $5.0 million, in comparison to $3.9 million in the second quarter of 2020. The increase in R&D expenses was mainly attributed to the product development activities of the Company and its subsidiaries, as mentioned above.
Business Development ("BD") expenses: Business Development expenses were $0.7 million for the second quarter of 2021, in comparison to $0.5 million in the second quarter of 2020. The increase was attributed mainly to Canonic's and Lavie Bio's preparations towards expected launch of their first products in 2022.
General and Administrative ("G&A") expenses: General and Administrative expenses for the second quarter of 2021 were $1.8 million, in comparison to $1.1 million in the second quarter of 2020. The increase was attributed to the increase of the costs of directors' and officers' insurance policies.
Operating loss: Operating loss for the second quarter of 2021 was $7.4 million in comparison to $5.2 million in the second quarter of 2020.
Net loss: The net loss for the second quarter of 2021 was $6.9 million in comparison to a net loss of $4.8 million during second quarter of 2020.
***
Conference Call & Webcast Details:
Date: August 11, 2021
Time: 9:00 am EST; 16:00 Israel time
Dial-in number:1-888-281-1167 toll free from the United States, or +972-3-918-0609 internationally
Webcast: Link available at www.evogene.com
Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call.
To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible through August 13, 2021, and an archive of the webcast will be available on the Company's website.