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The call presented strong technology and pipeline progress — notable AI/Google collaborations, a rapidly growing pharma collaboration slate, and demonstrable iterative success in the Ag fungicide program — which are meaningful strategic achievements. However, these operational and R&D advances are contrasted by material near-term financial weakness: an ~87% revenue decline year-over-year, increased net loss driven largely by financing charges, the termination of a Bayer collaboration for biological reasons, and a modest cash balance that implies limited runway without further funding or cash inflows. Overall, business momentum on the technology and pipeline front is positive, but short-term financial and commercial metrics are weak and present risk.
Management guided that they expect “meaningful progress” across all three core areas—technology, pharma and ag-chemicals—driven by additional technology collaborations (including the second Google engagement), new and expanding pharma partnerships and continued advancement of internal ag and pharma pipelines. Financially, they reported approximately $13.1 million of consolidated cash as of March 31, 2026 with Q1 cash usage of about $2.8 million, noted recent warrant-induced gross proceeds of roughly $3.4 million (with a related warrants liability of ~$1.7 million) and reminded investors of anticipated subsidiary cash distributions (Lavie $4.25M, Biomica $2.7M) expected in Q2. Quarterly operating metrics included Q1 revenue of ~$0.3M (down from $2.3M), cost of revenues ~$0.1M, R&D ~$1.8M, S&M ~$0.4M, G&A ~$1.2M, operating loss of ~$3.2M and net loss of ~$5.9M (driven by ~$2.7M net financing expense and a ~$3.8M warrant-related financing charge). On product development they highlighted concrete ag screening results (initial 440 candidates → 11 enzymatic hits/2 antifungal; follow-up 164 → 38 inhibiting/5 antifungal; then 27 novel → 25 enzymatic hits/15 biologically active), reiterated the Septoria market opportunity of >$1.2B (70% of EU wheat fungicide use targets this disease) and noted a >$26B addressable opportunity in demyelinating disorders, while cautioning that strategic pharma licensing or equity investments are likely to follow demonstration of near-term value-creating milestones rather than occur within the next few quarters.
Expanded Campus AI capabilities via continued collaboration with Google (second collaboration announced Feb 2026) to integrate advanced AI agents, enabling automated extraction of insights from scientific literature, creation of proprietary datasets and building more accurate computational models — positioned to materially strengthen Evogene's technological leadership in small-molecule discovery.
Pharma division announced three new collaborations in Q1 2026 (Systasy Bioscience + Ludwig Maximilian University Hospital for neutrophil-driven hyperinflammatory diseases; Unravel Biosciences for demyelinating disorders / MS; Queensland University of Technology on chemotherapy resistance). Pharma effort launched in early 2025 and has grown to multiple high-potential partnerships within ~1 year, targeting large markets including a >$26 billion opportunity for demyelinating disorders.
AgPlenus internal Septoria fungicide program showed strong iterative improvement using ChemPass AI: initial screen 440 candidates → 11 met enzymatic thresholds and 2 showed antifungal activity; second purchased set 164 → 38 enzymatic hits and 5 antifungal; later 27 novel compounds custom synthesized → 25 met enzymatic thresholds and 15 showed desired biological activity. This represents a dramatic improvement in hit rates and validates the AI-driven experimental cycle.
Established strategic collaborations with major ag partners (previous partnerships with Bayer and Corteva) and multiple biotech/academic partners — these collaborations validate Evogene's discovery capabilities and support commercialization pathways.
Consolidated cash, cash equivalents and short-term deposits of approximately $13.1 million as of March 31, 2026; Q1 consolidated cash usage approximately $2.8 million. February 2026 warrant inducement transaction generated gross proceeds of approximately $3.4 million (before fees) and Lavie/Biomica approved dividend distributions ($4.25M and $2.7M respectively) that are expected to provide additional cash to shareholders/subsidiaries.
Research & development expenses decreased to approximately $1.8 million in Q1 2026 from $2.5 million in Q1 2025 (approximately 28% decline), and certain operating expense reductions were realized following scaling down of non-core subsidiaries.
Welcome to Evogene's First Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded May 20, 2026. Before we begin, I would like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events and Evogene Ltd., the company may, from time to time, make other statements regarding our outlook or expectation for future financial or operating results and/or other measures regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA and other securities laws as amended. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, planned estimated, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discussed our value drivers commercialization effort and timing, product development and launches, estimated market size and milestones, pipeline as well as our capabilities and technology.
Such statements are based on current expectations, estimates, projections and assumptions described opinions about future events involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance w...