Evogene Reports First Quarter 2021 Financial Results

 

REHOVOT, Israel, May 26, 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, announces today its financial results for the first quarter of 2021.

Evogene logo

Mr. Ofer Haviv, Evogene's President and CEO, stated, "A major corporate target for this year and the year following is value creation and its recognition by the capital markets, through Evogene's subsidiaries. Two main paths to achieve this target in life-science based companies, such as our subsidiaries, are: product advancement and commercialization, and demonstration of their underlying technological advantage.

With respect to product advancement, in 2021-2022, all our subsidiaries have significant milestones for pipeline advancement, and some of them are even expected to reach first product launches. We believe that announcing the achievement of such milestones, as they are reached, will enable the capital markets to properly appreciate the value created by the subsidiaries and will also be reflected in Evogene's value recognition.

With respect to demonstration of the advantage of the underlying technology, we believe that it can be recognized through the rapid progress of our subsidiaries' discovery and development pipelines. Moreover, any strategic collaboration entered into by a subsidiary, such as between AgPlenus and Corteva, or equity investment in a subsidiary by a strategic partner, such as Corteva's investment in Lavie Bio, is a vote of confidence in the unique advantages of our technology.

As previously disclosed, some of our subsidiaries are targeting to achieve additional strategic collaborations during 2021-2022. We expect that such collaborations will enable the capital markets to further recognize the unique technological value of our subsidiaries, thus reflecting on Evogene's value, as well.

I am pleased to report that both Evogene and our subsidiaries have been progressing in accordance with their plans during the first quarter of 2021. Each of our subsidiaries has a very promising product pipeline, and their activities are aiming to advance the products towards commercialization."

Q1 2021 main achievements

Biomica

  • Received additional positive pre-clinical results in its immuno-oncology program demonstrating efficacy of its live biotherapeutic product consortium BMC128 in combination with immune-checkpoint-inhibitors, this time in melanoma.

Canonic

  • Entered into agreements for the production and distribution in Israel of Canonic's medical cannabis products with Tikun Olam-Cannbit Pharmaceuticals to enable the planned launch of Canonic's first product in 2022.

Lavie Bio

  • Recently appointed Mr. Russ Putland as Vice President Commercial, bringing significant commercial experience to the Lavie Bio management team in preparation for its anticipated product launches starting 2022.

Evogene's Ag-Seed division

  • Entered a collaboration agreement with a U.S. company, Plastomics, whereby Evogene's insect control genes, demonstrating new modes of action, will be introduced into soybean, utilizing Plastomics' disruptive new technology.

"We enthusiastically look forward to continuing our progress, achieving our defined targets, entering into new collaborations, and expanding the use of our technology into new fields of activity," Mr. Haviv concluded.

Consolidated financial results for the first quarter ended as of March 31, 2021:

Cash position: Evogene maintains a strong financial position for its activities with approximately $70.1 million in consolidated cash, cash related accounts, bank deposits and marketable securities as of March 31, 2021. Approximately $11.8 million of Evogene's consolidated cash is appropriated to its subsidiary, Lavie Bio.

During the first quarter of 2021, our consolidated net cash usage, excluding $27.1 million of net proceeds raised through an "At the Market Offering" ("ATM") initiated in January 2021 and concluded during February 2021, was approximately $5.2 million, or $4.0 million, if excluding Lavie Bio. The Company has no bank debt.

In March 2021 we announced a new "ATM" and we had not sold any shares under this offering as of the end of the quarter.

Research and Development ("R&D") expenses: R&D expenses, which are reported net of grants received, were approximately $4.3 million for the first quarter of 2021 (including a non-cash expense of $0.3 million for amortization of share-based compensation), in comparison to $4.6 million (including a non-cash expense of $0.9 million for amortization of share-based compensation) in the first quarter of 2020. In the first quarter of 2021 the actual R&D expenses slightly decreased, mainly due to a decrease in share-based compensation expenses.

Business Development ("BD") expenses: BD expenses were approximately $0.6 million for the first quarter of 2021 (including a non-cash expense of $0.1 million for amortization of share-based compensation), in comparison to $1.0 million (including a non-cash expense of $0.7 million for amortization of share-based compensation) in the first quarter of 2020.

General and Administrative ("G&A") expenses: G&A expenses for the first quarter of 2021 were $1.5 million (including a non-cash expense of $0.1 million for amortization of share-based compensation), in comparison to $1.3 million (including a non-cash expense of $0.3 million for amortization of share-based compensation) in the first quarter of 2020. The increase is mainly attributed to the increase of the costs of directors' and officers' insurance, partially offset by a decrease in non-cash expenses of amortization of share-based compensation.

Operating loss:  Operating loss for the first quarter of 2021 was $6.3 million, in comparison to $6.9 million for the first quarter of 2020. The decrease in operating loss during the first quarter is attributed to the increase in revenues from collaboration agreements compared to the first quarter of 2020 and due to the decrease in aforementioned amortization of share-based compensation expenses.

Loss: The loss for the first quarter of 2021 was $7.1 million in comparison to a loss of $7.2 million for the first quarter of 2020. The slight decrease in the loss for the first quarter is attributed to the reduction in operating loss, partially offset by an increase in financing expenses mainly attributed to exchange rate differences and revaluation of pre-funded warrants. 

Conference Call & Webcast Details:

Date: May 26, 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: 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 +972-3-925-5904 internationally. The replay will be accessible through May 28, 2021, and an archive of the webcast will be available on the Company's website. 

About Evogene Ltd.:

Evogene (NASDAQ: EVGN, TASE: EVGN), is a leading company in leveraging computational biology to design novel products for life-science-based industries including human health, agriculture, and industrial applications. Leveraging Big Data and Artificial Intelligence while incorporating a deep understanding of biology, Evogene established its unique technology, the Computational Predictive Biology (CPB) platform, to computationally design microbes, small molecules and genes as the core components for life-science products. Evogene holds a number of subsidiaries utilizing the CPB platform, for the development of human microbiome-based therapeutics, medical cannabis, ag-biologicals, ag-chemicals, seed traits and ag-solutions for castor oil production. For more information, please visit www.evogene.com

Forward Looking Statements

This press release contains "forward-looking statements" relating to future events. These statements may be identified by words such as "may", "could", "expects", "intends", "anticipates", "plans", "believes", "scheduled", "estimates" or words of similar meaning. For example, Evogene is using forward-looking statement in this press release when it discusses its expected paths to value creation, its and its' subsidiaries expected trials, studies, product advancements, commercializations, launches, pipelines, milestones, potential collaborations and other plans for 2021 and 2022, the potential advantages of its technology and its anticipated entry into new fields of activity. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, those risk factors contained in Evogene's reports filed with the applicable securities authority, as well as a result of the impacts of the COVID-19 pandemic. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field-trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines (including as a result of the effect of the COVID-19 pandemic), Evogene and its subsidiaries may experience significant delays in the conduct of their activities. 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.

 

Evogene Investor Contact

US Investor Relations:

   

Aviva Banczewski / Rivka Neufeld

Investor Relations and Public Relations Manager

E: IR@evogene.com 

T: +972-8-931-1900

Joseph Green
Edison Group
E: jgreen@edisongroup.com
T: +1 646-653-7030

   
 

Laine Yonker

Edison Group

E: lyonker@edisongroup.com

T: +1 646-653-7035

 

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

U.S. dollars in thousands (except share and per share data)

 
   

As of March 31,

 

As of December 31,

   

2021

 

2020

   

Unaudited

 

Audited

CURRENT ASSETS:

       

Cash and cash equivalents

 

$             38,642

 

$                    46,229

Marketable securities

 

19,948

 

-

Short-term bank deposits 

 

11,500

 

2,000

Trade receivables 

 

219

 

222

Other receivables and prepaid expenses

 

2,584

 

3,372

         
   

72,893

 

51,823

LONG-TERM ASSETS:

       

Long-term deposits

 

10

 

9

Right-of-use-assets

 

1,882

 

1,872

Property, plant and equipment, net

 

2,084

 

2,072

Intangible assets, net

 

15,909

 

16,139

         
   

19,885

 

20,092

         
   

$             92,778

 

$                    71,915

CURRENT LIABILITIES:

       

Trade payables

 

$                  993

 

$                         863

Employees and payroll accruals

 

2,397

 

2,535

Operating lease liability

 

758

 

777

Liabilities in respect of government grants

 

144

 

72

Pre-funded warrants

 

-

 

4,144

Deferred revenues and other advances

 

26

 

47

Other payables

 

1,024

 

1,238

         
   

5,342

 

9,676

LONG-TERM LIABILITIES:

       

Operating lease liability

 

1,592

 

1,663

Liabilities in respect of government grants

 

3,740

 

3,694

         
   

5,332

 

5,357

SHAREHOLDERS' EQUITY:

       

Ordinary shares of NIS 0.02 par value:

 

230

 

200

  Authorized − 150,000,000 ordinary shares; Issued and
  outstanding – 40,414,229 shares as of March 31, 2021
  and 35,600,088 shares as of December 31, 2020

Share premium and other capital reserve

 

257,184

 

225,121

Accumulated deficit

 

(185,878)

 

(179,276)

         

Equity attributable to equity holders of the Company

 

71,536

 

46,045

         

Non-controlling interests

 

10,568

 

10,837

         

Total equity

 

82,104

 

56,882

         
   

$             92,778

 

$                    71,915

 

 

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

U.S. dollars in thousands (except share and per share data)

 
   

Three months ended

March 31,

 

 Year ended
December 31,

   

2021

 

2020

 

2020

   

Unaudited

 

Audited

             

Revenues

 

$               333

 

$               75

 

$          1,040

Cost of revenues

 

271

 

39

 

574

             

Gross profit

 

62

 

36

 

466

             

Operating expenses:

           
             

Research and development, net

 

4,297

 

4,587

 

17,287

Business development

 

570

 

970

 

2,672

General and administrative

 

1,454

 

1,337

 

5,321

             

Total operating expenses

 

6,321

 

6,894

 

25,280

             

Operating loss

 

(6,259)

 

(6,858)

 

(24,814)

             

Financing income

 

52

 

137

 

1,591

Financing expenses

 

(905)

 

(487)

 

(2,951)

             

Financing expenses, net

 

(853)

 

(350)

 

(1,360)

             

Loss before taxes on income

 

(7,112)

 

(7,208)

 

(26,174)

Taxes on income

 

8

 

6

 

32

             

Loss

 

$         (7,120)

 

$         (7,214)

 

$      (26,206)

             

Attributable to:

           

Equity holders of the Company

 

(6,602)

 

(6,228)

 

(23,374)

Non-controlling interests

 

(518)

 

(986)

 

(2,832)

             
   

$         (7,120)

 

$         (7,214)

 

$      (26,206)

             

 

Basic and diluted loss per share

 

$           (0.17)

 

$           (0.24)

 

$          (0.83)

             

Weighted average number of shares used in
   computing basic and diluted loss per share

 

38,959,623

 

25,754,297

 

28,158,779

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 
   

Three months ended

March 31,

 

 Year ended
December 31,

   

2021

 

2020

 

2020

   

Unaudited

 

Audited

               

Cash flows from operating activities:

           
             

Loss

 

$          (7,120)

 

$           (7,214)

 

$      (26,206)

             

Adjustments to reconcile loss to net cash used in operating
   activities:

           
             

Adjustments to the profit or loss items:

           
             

Depreciation

 

330

 

420

 

1,792

Amortization of intangible assets

 

230

 

233

 

935

Share-based compensation

 

531

 

1,934

 

4,097

Pre-funded warrants issuance expenses

 

-

 

-

 

211

Decrease in accrued bank interest

 

12

 

25

 

64

Net financing expense

 

886

 

376

 

967

Taxes on income

 

8

 

6

 

32

             
   

1,997

 

2,994

 

8,098

 

Changes in asset and liability items:

           
             

Decrease (increase) in trade receivables

 

3

 

11

 

(150)

Decrease (increase) in other receivables

 

719

 

(157)

 

(1,300)

Increase in long-term deposits

 

(1)

 

-

 

-

Increase (decrease) in trade payables

 

123

 

(274)

 

(29)

Increase (decrease) in employees and payroll accruals

 

(138)

 

(639)

 

456

Decrease in other payables

 

(255)

 

(212)

 

(87)

Decrease in deferred revenues and other advances

 

(21)

 

(41)

 

(339)

             
   

430

 

(1,312)

 

(1,449)

             

Cash received (paid) during the period for:

           
             

Interest received

 

69

 

112

 

294

Interest paid

 

(57)

 

(50)

 

(238)

Taxes paid

 

(8)

 

(6)

 

(13)

             

Net cash used in operating activities

 

(4,689)

 

(5,476)

 

$      (19,514)

             

Cash flows from investing activities:

           
             

Purchase of property, plant and equipment

 

(183)

 

(291)

 

(682)

Proceeds from sale of marketable securities

 

201

 

1,044

 

2,097

Purchase of marketable securities

 

(20,281)

 

-

 

-

Proceeds from (investments in) bank deposits, net

 

(9,500)

 

2,500

 

8,000

             

Net cash provided by (used in) investing activities

 

$        (29,763)

 

$              3,253

 

$           9,415

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

 
   

Three months ended

March 31,

 

 Year ended
December 31,

   

2021

 

2020

 

2020

   

Unaudited

 

Audited

             

Cash flows from financing activities:

           
             

Proceeds from issuance of ordinary shares, net of issuance
expenses

 

 

27,108

 

-

 

 

18,658

Proceeds from issuance of pre-funded warrants

 

-

 

-

 

1,989

Proceeds from advances for pre-funded warrants

 

-

 

-

 

9

Proceeds from exercise of options

 

445

 

-

 

59

Repayment of lease liability

 

(167)

 

(177)

 

(639)

Proceeds from government grants

 

123

 

175

 

320

Repayment of government grants

 

(20)

 

-

 

(22)

             

Net cash provided by (used in) financing activities

 

27,489

 

(2)

 

20,374

             

Exchange rate differences - cash and cash equivalent
balances

 

(624)

 

(512)

 

1,206

             

Increase (decrease) in cash and cash equivalents

 

(7,587)

 

(2,737)

 

11,481

             

Cash and cash equivalents, at the beginning of the period

 

46,229

 

34,748

 

34,748

             

Cash and cash equivalents, at the end of the period

 

$           38,642

 

$          32,011

 

$         46,229

             
             

Significant non-cash activities

           

Acquisition of property, plant and equipment

 

$                64

 

$                17

 

$                57

             

Increase (decrease) of right-of-use asset recognized
with corresponding lease liability

 

$              162

 

$                   -

 

$             (41)

             

Exercise of options

 

$                   -

 

$                   -

 

$                57

             

Ordinary shares issuance expenses

 

$                50

 

$                   -

 

$                  -

             

 

 

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SOURCE Evogene

 
 
Company Codes: TelAviv:EVGN, NASDAQ-NMS:EVGN
 

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