REHOVOT, Israel, July 31, 2019 /PRNewswire/ -- Evogene Ltd. EVGN EVGN, a leading biotechnology company developing novel products for life science markets, announced today its financial results for the second quarter ending June 30, 2019.
Ofer Haviv, Evogene's President and CEO, stated: "During the first half of 2019 we completed the transition to our new corporate structure consisting of Evogene as a technology hub for multiple subsidiaries in different life-science markets. This corporate structure provides the subsidiaries with support from Evogene, to allow the subsidiaries to focus on building valuable assets and fast-tracking their product development towards commercialization. Evogene's support to its subsidiaries can be attributed to three main areas:
- Access to the CPB platform– right to use the CPB platform by each subsidiary for its dedicated area of activity, to (i) advance subsidiaries' current product pipelines, (ii) to expand the subsidiaries' product pipeline.
- Corporate and infrastructure support – (i) the subsidiaries' management works closely with Evogene's board, management, and advisors to benefit from their broad experience & access to industry network, (ii) Evogene provides access to its facilities and infrastructure including labs, greenhouses, and other.
- Funding – Evogene intends to leverage its strong financial position to financially support its subsidiaries until a point of maturity, wherein enough valuable assets have been created to warrant an attractive valuation at fundraising, or through the generation of revenues from sales or collaborations to cover expenses. Evogene aims to remain a major shareholder in its subsidiaries following external fundraising in order to maintain, for Evogene shareholders, a significant share of the subsidiaries' future profits and/or market value.
Evogene and its subsidiaries are fully committed to achieving the milestones presented in Evogene's updated corporate presentation filed today." – Mr. Haviv concluded
Recent Developments:
- Lavie Bio announced positive 2nd year field results in its bio-stimulant program for wheat with product candidates showing repeated significant yield improvement in spring wheat field trials across multiple locations, varieties and conditions.
- Amendment of Evogene's collaboration agreement with Bayer[1] to include genome editing targets following positive results in corn stalk rot fungal disease control. Evogene will use its CPB platform to identify the required edits to improve disease resistance in corn, focusing on altering gene expression or function. Any promising targets would be pursued by Bayer's in-house team for validation.
- Evogene and certain subsidiary management have initiated a process to evaluate fundraising activities as the opportunities arise.
Consolidated financial results for the period ending June 30, 2019:
Cash position: As of June 30, 2019, Evogene had approximately $46 million in cash, short-term bank deposits and marketable securities, representing a net cash usage of approximately $8.7 million during the first half of 2019 and $4.2 million during the second quarter of 2019.
Assuming that no external financial resources are secured, such as through new collaborations or external fund raising, the Company continues to estimate that its net cash usage in 2019 will be in the range of $16 to $18 million dollars.
Evogene's consolidated cash use is mostly appropriated to its subsidiaries, mainly Lavie Bio, AgPlenus, and Biomica, with funds also used for the establishment of infrastructure and greenhouses for Canonic.
The Company does not have bank debts.
Revenues primarily consist of research and development payments. These revenues represent R&D cost reimbursement and milestone payments under our various collaboration agreements. The majority of these agreements also provide for royalties or other forms of revenue sharing from successfully developed products.
Gross profit for the first half of 2019 was approximately $0.4 million in comparison to approximately $0.2 million for the first half of 2018. Gross profit for the second quarter of 2019 remained stable at approximately $0.1 million in comparison to the second quarter of 2018.
R&D expenses for the first half of 2019 remained stable at approximately $7 million in comparison to the first half of 2018. R&D expenses for the second quarter of 2019 remained stable at approximately $3.5 million in comparison to the second quarter of 2018. R&D expenses mostly represent product development activities of the Company and its subsidiaries, which include field trials and pre-clinical studies provided by third parties. Evogene's consolidated R&D expenses were mostly attributed to its subsidiaries, mainly Lavie Bio, AgPlenus, and Biomica, and to its seed division activity.
Operating loss for the first half of 2019 was approximately $9.4 million in comparison to approximately $9.6 million in the first half of 2018. Operating loss for the second quarter of 2019 remained stable at approximately $4.7 million in comparison to the second quarter of 2018.
Net financing income for the first half of 2019 was approximately $1.5 million in comparison to net financing expenses of approximately $0.5 million in the first half of 2018. Net financing income for the second quarter of 2019 was approximately $0.6 million in comparison to net financing expenses of approximately $0.1 million in the second quarter of 2018. This increase in the first half of 2019 is mainly due to translation of Israeli Shekel nominated cash and marketable securities to US Dollars, revaluation of the Company's marketable securities and interest income on bank deposits.
Loss for the first half of 2019 decreased to approximately to $7.9 million in comparison to a loss of $10.1 million during first half of 2018. Loss for the second quarter of 2019 decreased to approximately to $4.1 million in comparison to a loss of $4.8 million during second quarter of 2018.
Conference Call & Webcast Details:
Evogene's management will host a conference call today, the 31st of July 2019, to discuss the results at 09:00 AM Eastern time, 16:00 Israel time. To access the conference call, please dial 1-888-668-9141 toll free from the United States, or +972-3-918-0609 internationally. Access to the call will also be available via live webcast through the Company's website at www.evogene.com.
A replay of the conference call will be available approximately three 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 August 2, 2019, and an archive of the webcast will be available on the Company's website through August 11, 2019.
About Evogene Ltd.:
Evogene (NASDAQ, TASE: EVGN) is a leading biotechnology company developing novel products for major life science markets through the use of a unique computational predictive biology (CPB) platform incorporating deep scientific understandings and advanced computational technologies.
Today, this platform is utilized by the Company to discover and develop innovative products in the following areas (via subsidiaries or divisions): ag-chemicals, ag-biologicals, seed traits, integrated castor oil ag-solutions, human microbiome-based therapeutics and medical cannabis. Each subsidiary or division establishes its product pipeline and go-to-market, as demonstrated in its collaborations with world-leading companies such as BASF, Bayer, Corteva and ICL. 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. 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 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 Evogene's control, including, without limitation, those risk factors contained in Evogene's reports filed with the appropriate securities authority. Evogene disclaims any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.
[1]Originally with Monsanto, which was acquired by Bayer
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
U.S. dollars in thousands (except share and per share data) | ||||
June 30, |
December 31, | |||
2019 | 2018 | |||
Unaudited | Audited | |||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 14,097 | $ 5,810 | ||
Marketable securities | 9,088 | 26,065 | ||
Short-term bank deposits | 22,592 | 22,592 | ||
Trade receivables | 147 | 160 | ||
Other receivables and prepaid expenses | 1,871 | 861 | ||
47,795 | 55,488 | |||
LONG-TERM ASSETS: | ||||
Long-term deposits | - | 19 | ||
Operating lease right-of-use-assets | 3,206 | - | ||
Property, plant and equipment, net | 2,453 | 3,187 | ||
5,659 | 3,206 | |||
$ 53,454 | $ 58,694 | |||
CURRENT LIABILITIES: | ||||
Trade payables | $ 748 | $ 1,015 | ||
Employees and payroll accruals | 1,735 | 2,095 | ||
Operating lease liability | 716 | - | ||
Liabilities in respect of government grants | 457 | 988 | ||
Deferred revenues and other advances | 238 | 412 | ||
Other payables | 819 | 921 | ||
4,713 | 5,431 | |||
LONG-TERM LIABILITIES: | ||||
Operating lease liability | 2,638 | - | ||
Liabilities in respect of government grants | 3,209 | 2,898 | ||
Deferred revenues and other advances | 9 | 28 | ||
Severance pay liability, net | 27 | 31 | ||
5,883 | 2,957 | |||
SHAREHOLDERS' EQUITY: | ||||
Ordinary shares of NIS 0.02 par value: Authorized - 150,000,000 ordinary shares; Issued and outstanding - 25,754,297 at June 30, 2019 and December 31, 2018, respectively | 142 | 142 | ||
Share premium and other capital reserve | 188,039 | 187,701 | ||
Accumulated deficit | (145,593) | (137,790) | ||
Equity attributable to equity holders of the Company | 42,588 | 50,053 | ||
Non-controlling interests | 270 | 253 | ||
Total equity | 42,858 | 50,306 | ||
$ 53,454 | $ 58,694 | |||
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | ||||||||||
U.S. dollars in thousands (except share and per share data) | ||||||||||
Six months ended | Three months ended | Year ended | ||||||||
June 30, | June 30, | December 31, | ||||||||
2019 | 2018 | 2019 | 2018 | 2018 | ||||||
Unaudited | Audited | |||||||||
Revenues | $ 540 | $ 745 | $ 192 | $ 379 | $ 1,747 | |||||
Cost of revenues | 172 | 549 | 101 | 265 | 1,452 | |||||
Gross profit | 368 | 196 | 91 | 114 | 295 | |||||
Operating expenses: | ||||||||||
Research and development, net | 7,024 | 6,945 | 3,480 | 3,460 | 14,686 | |||||
Business development | 970 | 1,084 | 477 | 486 | 2,084 | |||||
General and administrative | 1,746 | 1,786 | 837 | 841 | 3,514 | |||||
Total operating expenses | 9,740 | 9,815 | 4,794 | 4,787 | 20,284 | |||||
Operating loss | (9,372) | (9,619) | (4,703) | (4,673) | (19,989) | |||||
Financing income | 1,870 | 868 | 671 | 335 | 1,413 | |||||
Financing expenses | (390) | (1,388) | (108) | (418) | (2,206) | |||||
Financing income (expenses), net | 1,480 | (520) | 563 | (83) | (793) | |||||
Loss before taxes on income | (7,892) | (10,139) | (4,140) | (4,756) | (20,782) | |||||
Taxes on income | 3 | 16 | 1 | 13 | 30 | |||||
Loss | $ (7,895) | $ (10,155) | $ (4,141) | $ (4,769) | $ (20,812) | |||||
Attributable to: | ||||||||||
Equity holders of the Company | $ (7,803) | - | $ (4,094) | - | $ (20,758) | |||||
Non-controlling interests | (92) | - | (47) | - | (54) | |||||
$ (7,895) | - | $ (4,141) | - | $ (20,812) | ||||||
Basic and diluted loss per share, attributable to equity holders of the Company | $ (0.31) | $ (0.39) | $ (0.16) | $ (0.19) | $ (0.81) | |||||
Weighted average number of shares used in computing basic and diluted loss per share | 25,754,297 | 25,752,505 | 25,754,297 | 25,752,505 | 25,753,411 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
U.S. dollars in thousands | ||||||||||
Six months ended | Three months ended | Year ended | ||||||||
June 30, | June 30, | December 31, | ||||||||
2019 | 2018 | 2019 | 2018 | 2018 | ||||||
Unaudited | Audited | |||||||||
Cash flows from operating activities | ||||||||||
Loss | $ (7,895) | $ (10,155) | $ (4,141) | $ (4,769) | $ (20,812) | |||||
Adjustments to reconcile loss to net cash used in operating activities: | ||||||||||
Adjustments to the profit or loss items: | ||||||||||
Depreciation | 1,315 | 1,001 | 677 | 505 | 2,020 | |||||
Share-based compensation | 447 | 721 | 244 | 375 | 1,731 | |||||
Net financing expense (income) | (1,619) | 497 | (608) | 86 | 694 | |||||
Taxes on income | 3 | 16 | 1 | 13 | 30 | |||||
146 | 2,235 | 314 | 979 | 4,475 | ||||||
Changes in asset and liability items: | ||||||||||
Decrease (increase) in trade receivables | 13 | 3 | (109) | 60 | (28) | |||||
Decrease (increase) in other receivables | (656) | (752) | 102 | (130) | 95 | |||||
Increase in long-term deposits | - | (2) | - | (2) | - | |||||
Increase (decrease) in trade payables | (261) | (104) | 57 | 126 | (114) | |||||
Increase (decrease) in employees and payroll accruals | (360) | (313) | 45 | - | (182) | |||||
Increase (decrease) in other payables | (80) | (192) | (26) | 84 | 233 | |||||
Decrease in severance pay liability, net | (4) | - | (5) | - | - | |||||
Increase (decrease) in deferred revenues and other advances | (193) | 256 | (135) | 86 | (165) | |||||
(1,541) | (1,104) | (71) | 224 | (161) | ||||||
Cash received (paid) during the period for: | ||||||||||
Interest received | 55 | 821 | 21 | 288 | 1,360 | |||||
Taxes paid | (3) | (17) | (3) | (10) | (23) | |||||
Net cash used in operating activities | (9,238) | (8,220) | (3,880) | (3,288) | (15,161) | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
U.S. dollars in thousands | ||||||||||||
Six months ended | Three months ended | Year ended | ||||||||||
June 30, | June 30, | December 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | 2018 | ||||||||
Unaudited | Audited | |||||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property, plant and equipment | $ (197) | $ (153) | $ (114) | $ (105) | $ (374) | |||||||
Proceeds from sale of marketable securities | 19,994 | 21,097 | 13,765 | 13,875 | 63,639 | |||||||
Purchase of marketable securities | (1,637) | (3,155) | (1,637) | (951) | (31,700) | |||||||
Proceeds from (investment in) bank deposits, net | - | 1,880 | - | - | (14,212) | |||||||
Net cash provided by investing activities | 18,160 | 19,669 | 12,014 | 12,819 | 17,353 | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of options | - | 9 | - | - | 9 | |||||||
Proceeds from government grants | 287 | 153 | 90 | 96 | 354 | |||||||
Repayment of operating lease liability | (504) | - | (270) | - | - | |||||||
Repayment of government grants | (575) | (44) | (546) | - | (66) | |||||||
Net cash provided by (used in) financing activities | (792) | 118 | (726) | 96 | 297 | |||||||
Exchange rate differences - cash and cash equivalent balances | 157 | (271) | 101 | (249) | (114) | |||||||
Increase in cash and cash equivalents | 8,287 | 11,296 | 7,509 | 9,378 | 2,375 | |||||||
Cash and cash equivalents, beginning of the period | 5,810 | 3,435 | 6,588 | 5,353 | 3,435 | |||||||
Cash and cash equivalents, end of the period | $ 14,097 | $ 14,731 | $ 14,097 | $ 14,731 | $ 5,810 | |||||||
Significant non-cash activities | ||||||||||||
Acquisition of property, plant and equipment | $ 52 | $ 81 | $ 52 | $ 81 | $ 80 | |||||||
Evogene Investor Contact: | US Investor Relations: |
Nir Zalik | Vivian Cervantes |
IR Director | PCG Investor Relations |
972-8-931-1900 | 646-863-6274 |
View original content:http://www.prnewswire.com/news-releases/evogene-reports-second-quarter-of-2019-financial-results-300893834.html
SOURCE Evogene
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
