Evogene reported a significant decrease in revenue for the first quarter of 2026, falling to $0.3 million from $2.3 million in the same period of 2025. The decline is primarily attributed to lower seed sales from its Castor subsidiary, which had generated approximately $2 million in revenue during Q1 2025. Despite the revenue drop, the company is executing a strategic pivot to concentrate on high-impact markets, specifically leveraging its proprietary Chempas AI engine for small molecule drug discovery and agricultural chemical development.

Financial Performance and Position

The company's financial results for the quarter reflect the ongoing transition in its business operations. Cost of revenues decreased to approximately $0.1 million in Q1 2026 from $1.5 million in the corresponding period of 2025, consistent with the decline in revenue. Evogene ended the quarter with a strong cash position, holding consolidated cash, cash equivalents, and short-term bond deposits of approximately $13.1 million as of March 31, 2026.

Cash usage during the first quarter of 2026 was approximately $2.8 million. To bolster its liquidity, Evogene entered into a warrant inducement agreement in February 2026, resulting in gross proceeds of approximately $3.4 million before fees and expenses. Additionally, the company expects to receive cash distributions from subsidiaries Lavie Bio and Biomica, which received court approval for dividends of $4.25 million and $2.7 million, respectively. These distribution processes are anticipated to be completed in the second quarter of 2026.

Strategic Focus and Technological Advancements

Management emphasized that Evogene is streamlining its business to focus on two core areas: pharmaceuticals and agriculture. The company is directing all technological efforts toward its Chempas AI engine. A key component of this strategy involves technological collaborations, including a partnership with Google announced in 2025 to develop a breakthrough generative engine. In February 2026, a second collaboration with Google was announced to integrate AI agents into Chempas, aiming to enable capabilities that do not currently exist in the global small molecule discovery process.

Operational Updates and Collaborations

In the pharmaceutical division, Evogene announced three new collaboration agreements in the first quarter of 2026. These include partnerships with Cystasis Bioscience and Ludwig Maximilian University Hospital targeting inflammatory bowel disease, Unravel Biosciences focusing on demyelinating disorders, and a project with Queensland University of Technology addressing chemotherapy resistance.

In the agricultural sector, operations are conducted through the subsidiary Ag Planus. While the collaboration with Bayer was terminated due to biological target issues, the company continues its partnership with Corteva. Ag Planus is making progress on an internal project to develop a fungicide for Septoria, targeting a market value exceeding $1.2 billion. The company is also evaluating the potential of its Castor subsidiary in Brazil, where it is conducting field trials with the expectation of commencing seed sales for the 2027 growing season.

Evogene Ltd., a computational chemistry company specializing in AI-based generative design of small molecules for the pharmaceutical and agricultural industries, has announced its participation as a presenting company at the upcoming BIO International Convention. The event is scheduled to be held June 22-25, 2026, in San Diego, CA, USA.

Company Representation at the Convention

Evogene will be represented at the conference by senior leadership, including Ofer Haviv, President and Chief Executive Officer; Dr. Gabi Tarcic, Chief Development Officer; and Dr. Olga Nissan, VP Business Development. The management team will also be available for one-on-one meetings at the conference, with interested parties encouraged to contact Evogene's investor or public relations team.

Presentation Highlights

Dr. Tarcic will deliver an oral presentation focusing on the company's latest achievements in its pharma division. The presentation will highlight recent technological and scientific breakthroughs in AI-driven small-molecule discovery and optimization, as well as insights into how ChemPass AI™ is enabling new opportunities for collaborative drug discovery with pharmaceutical and biotech partners.

The key details of the scheduled presentation are as follows:

About ChemPass AI™ and Evogene

At the core of Evogene's technology platform is ChemPass AI™, a proprietary generative AI system designed to explore vast chemical space and generate novel, highly potent small molecules optimized across multiple critical parameters. Built on this technological foundation, and through strategic partnerships alongside internal product development, Evogene focuses on creating products for the pharmaceutical and agricultural industries.

Evogene is headquartered in Rehovot, Israel, and is listed on both NASDAQ and TASE under the ticker EVGN. Further information about the BIO International Convention is available at https://convention.bio.org/ .