Adam JacksonEvogene Ltd. (Nasdaq: EVGN) (TASE: EVGN) posted its financial results for the fourth quarter and fiscal year ending Dec. 31, 2023, showing a struggling medical cannabis subsidiary against the backdrop of rising revenue.
The Israel-based company, which uses advanced computational biology to alter cannabis strains, announced that it was considering reducing its investment in medical cannabis arm, Canonic, and mentioned ongoing discussions regarding the potential transfer of Canonic’s operations to a third party.
The completion and terms of such a transfer remain uncertain as of the firm’s latest financial report.
Evogene revenues climbed still, with figures rising from approximately $1.7 million in 2022 to around $5.6 million in 2023. The increase is attributed mainly to revenues generated from licensing fees and product sales, including significant contributions from its subsidiary, Lavie Bio, and its collaboration with Corteva.
“The Evogene Group has experienced a transformative year with industry perception of our technology and products translating into growing collaborations with world-leading companies,” president and CEO Ofer Haviv said in a statement. “The number and caliber of partnerships Evogene and our subsidiaries have formed speak volumes.”
Despite the rise in revenue, Evogene reported a widened fourth-quarter operating loss of approximately $7.6 million from $3.8 million in the same period the previous year, mainly due to the lack of one-time income that had been included in the previous year’s results.
The company’s year-end financials show cash and cash equivalents totaling approximately $31.1 million, boosted by investments and a direct offering that attracted institutional investors. The firm has no debt.
Evogene has announced plans to reduce its cash usage in the coming year, particularly by cutting expected expenses for Canonic.
The company said it maintained consistent investment in research and development, focusing on advancing its scientific projects. Evogene’s various subsidiaries, including Casterra, AgPlenus, Biomica, and Lavie Bio, have contributed to the year’s performance, each making strides in their respective fields of crop protection, therapeutic development, and other life science areas.
“This collaboration momentum affirms the value of Evogene’s AI tech-engines…built on our CPB platform developed over a decade,” Haviv added.
Looking ahead, management has expressed a positive outlook, pointing to the potential for growth through those ongoing and new partnerships, as well as product development initiatives.
“We anticipate continued revenue growth for the Evogene Group in 2024,” the CEO said.
One comment
space waves
August 8, 2024 at 10:03 pm
The cannabis industry has been rapidly evolving, and companies need to continuously assess their strategic priorities to remain competitive.