Evogene Posts Q1 Results, Suffers 67% YoY Revenue Decline

Biotechnology company Evogene Ltd. EVGN released Tuesday its financial results for the first quarter of 2020.

The Israel-based company, which is oriented toward improving crop quality and productivity, saw the quarter's year-over-year revenue decrease by roughly 67%, from $300,000 in 2019 to $100,000. The first quarter of 2020 showed a significant decline compared to the same period in the last year.

Evogene has been struggling for months as its fourth quarter financial update reported downturns as well.

Here's a breakdown of what the earnings report for the first quarter showed:

• Gross profit was $36 000, compared to a gross profit of $277 000 in the first quarter of 2019
• R&D expenses reached $4.6 million, versus $3.5 million in the same quarter last year
• Business development expenses increased by approximately 40% year-over-year to 0.7 million.
• An operating loss of $6.9 million, up by 47% compared to the first quarter last year
• Estimated cash usage (without Lavie Bio' cash usage) for 2020 ranges between $14-$16 million to $13-$15 million
• A cash position of about $40.6 million in consolidated net cash, short-term bank deposits, and marketable securities

"Last week, we unveiled Evogene's new branding, which we believe reflects the company's expanded vision and new business model and will facilitate clearer communications with potential partners and investors," said Evogene's President and CEO Ofer Haviv in a statement.

The company, established back in 2002 as a spin-off from Compugen, has since developed "two main pillars" — the CPB platform and its subsidiaries, Haviv added.

Other quarterly highlights include deals Evogene's subsidiaries inked with Biose Industrie and Hadassah Medical Center.

Evogene's Biomica, a biopharmaceutical company, has teamed up with a French company specializing in live biotherapeutic microorganisms to improve the production of drugs for its immuno-oncology program.

Canonic, Evogene's subsidiary developing medical cannabis products, has partnered with the Israeli medical organization for pre-clinical studies to back up the development of Canonic's operations.