Evogene (NASDAQ:EVGN) executives used the company’s fourth-quarter and full-year 2025 results call to outline a strategic transformation that narrowed its technology and market focus, while the finance team detailed the impact of cost reductions, discontinued operations, and several subsidiary-level changes.
Strategy shift centers on ChemPass AI and two end markets
President and CEO Ofer Haviv said that during 2025 the company conducted a comprehensive review of its technology, markets, and capital allocation and then “sharpen[ed] our focus and execution.” He described Evogene’s mission as designing novel, highly potent small molecules optimized across multiple parameters for drug development and chemicals, using its generative AI engine, ChemPass AI.
- Focusing technology development on a single computational engine, ChemPass AI
- Streamlining business activities to concentrate on two markets: human health (small-molecule drugs) and agriculture (novel ag chemicals)
As part of the restructuring, management dedicated computational capabilities to ChemPass AI, discontinued non-core activities, divested misaligned assets, resized the organization, and established a business development team aligned with the updated strategy, according to Haviv.
CEO highlights ChemPass AI differentiation and Google Cloud work
Haviv positioned ChemPass AI as a platform designed to generate novel, highly active molecules while meeting multi-parameter requirements “from day one,” with the aim of increasing downstream development success. He emphasized two core capabilities: generating novel molecules from a broad chemical territory and ensuring the molecules meet multiple demanding parameters at the outset.
He said ChemPass AI is based on a “38 billion molecules universe,” which he described as enabling the company to navigate chemical domains beyond traditional industry exploration and produce original structures with defensible intellectual property. He also said the system is designed to optimize critical chemical, biological, and physical parameters simultaneously, producing “synthesizable active molecules engineered from the outset” to meet development requirements.
Haviv also pointed to collaborations with technology companies, including Google Cloud. He said Evogene’s first announced collaboration with Google Cloud was completed in mid-2025, resulting in a foundation model for generating novel molecular product candidates optimized for multiple parameters. Haviv said the work processed a database of 38 billion structures, “tripled our benchmarks for accuracy,” and delivered “90% design precision.”
He added that Evogene initiated a second collaboration with Google Cloud in February 2026 to integrate “advanced AI agents” into ChemPass AI using Google Cloud Vertex AI, with goals that include decreasing manual errors and automating complex scientific workflows.
Partnered discovery programs and agriculture collaborations
In human health, Haviv said Evogene is advancing multiple partnered drug discovery programs with biotechnology companies and academic institutions, with ChemPass AI driving discovery and optimization of candidates that are progressing into testing with partners. He noted Evogene has publicly disclosed four collaborations to date and said the company expects activity to scale with additional collaborations.
In agriculture, Haviv said subsidiary AgPlenus continues to apply ChemPass AI to novel herbicides and fungicides. He cited strategic collaborations with Bayer and Corteva as evidence of the platform’s maturity and said Evogene expects growth through expansion of existing collaborations and formation of new partnerships.
Cost reductions, subsidiary actions, and warrant inducement
CFO Yaron Eldad said Evogene implemented an organizational realignment and cost reduction initiative as part of the updated strategic plan. Operating expenses net declined to approximately $13.8 million for 2025 from about $22 million in 2024. For Q4 2025, total operating expenses net were about $3.2 million versus $4.3 million in Q4 2024. Eldad said the company expects the reduced expense level to be sustained in future periods.
Eldad also detailed several changes across subsidiaries:
- Lavie Bio: In 2025, Lavie Bio completed the sale of the majority of its operations to ICL. Eldad said Lavie Bio no longer maintains employees, and operating expenses have decreased significantly. Lavie Bio anticipates distributing the majority of its remaining cash to shareholders, including Evogene, during 2026.
- Biomica: Evogene scaled down Biomica’s operations and R&D during 2025 and reduced personnel to a minimal level. In early 2026, Biomica entered into a license agreement with Lishan Pharmaceuticals for its lead oncology candidate, BMC128. Following the transaction, Eldad said Biomica does not expect further material operational activities and anticipates distributing the majority of its remaining cash to shareholders, including Evogene.
- AgPlenus: The company integrated its ag chemical subsidiary into Evogene’s core operations and resized and streamlined it to reflect the revised operating model.
- Casterra: Due to a significant decline in castor seed demand, Casterra ceased operations in Kenya, reduced headcount and overall expense levels, and is focusing activities on Brazil. Eldad said Casterra recorded an inventory impairment of approximately $2.2 million, presented within cost of sales.
Eldad also said that in February 2026 Evogene entered into a warrant inducement agreement with an existing investor that resulted in gross proceeds of approximately $3.4 million (before fees and expenses) from the immediate exercise in full of August 2024 Series A and Series B warrants. In exchange, the investor will receive new unregistered Series A-1 and Series B-1 warrants to purchase up to an aggregate of 5,076,924 ordinary shares, exercisable immediately at $1.25 per share.
Financial results: revenue decline, impairment impact, and lower annual net loss
Evogene reported consolidated cash, cash equivalents, and short-term bank deposits of approximately $13 million as of December 31, 2025. Consolidated cash usage in Q4 2025 was about $3 million; excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $2.4 million in cash during the quarter.
Revenue for 2025 totaled approximately $3.9 million compared to about $5.6 million in 2024, a decrease of roughly $1.7 million. Eldad attributed the decline primarily to lower revenue recognized from AgPlenus, including a one-time payment in Q1 2024, and revenue recognized from a collaboration agreement with Corteva that was completed during 2024. Q4 2025 revenue was approximately $0.3 million, down from about $1.5 million in Q4 2024, mainly due to reduced seed sales generated by Casterra.
Cost of revenues for 2025 rose to approximately $4.1 million from $2.4 million in 2024, primarily driven by the $2.2 million inventory impairment recorded by Casterra in Q4 2025. Cost of revenues in Q4 2025 was $2.3 million, up from $0.7 million a year earlier, also primarily due to the impairment.
R&D expenses, net of non-refundable grants, were approximately $8 million in 2025, down from $12.5 million in 2024, reflecting reduced R&D spending in Biomica, Casterra, and AgPlenus. Sales and marketing expenses declined to about $1.5 million from $2 million, while general and administrative expenses decreased to approximately $4.3 million from about $7 million.
Operating loss for 2025 was approximately $14 million, improving from about $18.8 million in 2024, which Eldad said was mainly due to lower operating expenses, partially offset by lower revenue and the Casterra impairment. Operating loss for Q4 2025 was approximately $5.2 million, compared with $3.5 million in Q4 2024.
Financing income net for 2025 was approximately $0.6 million compared to about $4 million in 2024, which Eldad said was mainly associated with accounting treatment of pre-funded warrants and warrants issued in the August 2024 fundraising. Income from discontinued operations net for 2025 was approximately $5.7 million, compared to a loss of about $3.2 million in 2024. Eldad said discontinued operations included Lavie Bio’s results and expenses related to MicroBoost AI for AG, and the company recognized a gain on sale of approximately $6.4 million following the sale of the majority of Lavie Bio’s assets and MicroBoost AI for AG to ICL.
Net loss for 2025 was approximately $7.8 million, compared with approximately $18.1 million in 2024. Q4 2025 net loss was approximately $5.4 million, compared to a net loss of about $5,000 in Q4 2024, which Eldad attributed primarily to decreased financial income, decreased revenues, and increased cost of revenues, partially offset by decreased operating expenses.
During the Q&A, Haviv said Biomica’s license agreement with Lishan includes a milestone payment tied to advancement of BMC128 or a commercial transaction that generates value for Lishan, along with revenue sharing on end-product revenue, though he did not disclose specific amounts. He also said Evogene expects cash following dividend distributions from Lavie Bio and Biomica to support operations “for at least mid next year,” adding that even without additional financing transactions, the company expects to have sufficient cash for “a little bit more than a year and a half.”
Haviv pointed to three categories of potential catalysts over the next 12 months: additional technology collaborations with large technology companies, additional collaborations with biotech and pharmaceutical companies using ChemPass AI for small-molecule discovery and optimization (which he said could include early cash inflows), and additional agriculture chemical collaborations, as industry conditions improve and as AgPlenus’ recent performance supports new deals.
About Evogene (NASDAQ:EVGN)
Evogene Ltd. is a biotechnology company specializing in the use of computational and predictive biology technologies to design and develop novel products for agriculture and human health. Founded in 2002 and headquartered in Rehovot, Israel, the company has built a proprietary computational platform that integrates genomics, machine learning and data analytics to identify gene targets and biological traits. Evogene’s platform serves as the backbone for its research and development efforts, enabling the discovery of enhanced crop traits, microbial solutions and microbiome-based diagnostics and therapeutics.
In the agricultural sector, Evogene applies its platform to improve crop performance across a range of parameters, including yield enhancement, stress tolerance and resistance to pests and pathogens.
