REHOVOT, Israel, Nov. 28, 2008 (GLOBE NEWSWIRE) -- Evogene Ltd. (TASE:EVGN) announced today its financial results for the third quarter ended September 30, 2008.
Ofer Haviv, Evogene's president and CEO stated: "We are very pleased by our continuing progress and the achievements of the past quarter highlighted by:
-- A multiyear collaboration agreement with Monsanto Company. The
agreement provides Monsanto with exclusive licensing rights in a
number of crops to candidate genes that are predicted to improve
plant yield, discovered by Evogene during the next five years.
Evogene expects to receive approximately $35 million over the
research term of the collaboration in the form of upfront and
annual research payments. Evogene is also entitled to development
milestone and royalties on future sales of seeds incorporating
Evogene licensed genes.
-- The continued progress under our collaborations with other
leading international companies."
Mr. Haviv continued: "With respect to our financial status, available resources were substantially increased during the past quarter through the signing of an investment agreement with Monsanto, pursuant to which they have purchased for $18 million an approximately 13.6% equity interest in Evogene, and have agreed to purchase, subject to certain diligence requirements under the collaboration agreement, $12 million of additional Evogene equity in the future. We ended the past quarter with $32 million in cash, cash equivalents, cash deposits and short-term marketable securities (including the equity purchase by Monsanto)."
"Another significant effort during the past quarter," Mr. Haviv reported, "was the continued expansion of our R&D infrastructure to support our rapidly growing activities in the two areas of strategic interest to our company -- improved plant traits and biofuels. This effort included the investment in new 'state-of-the-art' green-houses, additional lab and computational equipment and increasing our professional staff."
The financial results for the first nine months and the third quarter of 2008 include the following substantial non-cash charges:
-- $4.6 million to financial expenses due to revaluation of tradable
options and obligation to the Office of Israeli Chief Scientist,
compared to $942 thousand for the first nine months of 2007; and
for the third quarter of 2008, such non-cash charge to financial
expenses was $5.2 million compared to $246 thousand for the third
quarter of 2007.
-- $1.5 million to R&D expenses for the first nine months of 2008
relating to the potential liability for future reimbursement of
certain success based governmental grants received in the past by
the company, compared to $262 thousand for the first nine months
of 2007; and for the third quarter of 2008 such non-cash charge
to R&D expenses was $1.2 million compared to $181 thousand for
the third quarter of 2007.
-- $504 thousand to loss from ordinary operations for the first nine
months of 2008 relating to amortization of deferred compensation
compared to $465 thousand for the first nine months of 2007; and
for the third quarter of 2008 such non-cash charges to loss from
ordinary operations was $182 thousand, compared to $200 thousand
for the third quarter of 2007.
Revenues for the first nine months of 2008 were $1.1 million, compared to $184 thousand for the same period in 2007. Revenues for the third quarter of 2008 were $870 thousand, compared to $39 thousand for the same period in 2007. The revenues for the first nine months and the third quarter of 2008 include revenues generated in the first month (September 2008) of the recently signed collaboration with Monsanto.
Including the applicable non-cash charges as stated above, loss from ordinary operations for the first nine months of 2008 was $5.0 million, compared to $2.7 million for the same period in 2007. Loss from ordinary operations for the third quarter of 2008 was $2.3 million compared to $1.2 million for the same period in 2007.
Including the applicable non-cash charges as stated above, financial expenses for the first nine months of 2008 were $4.5 million, compared to $885 thousand for the same period in 2007. Financial expenses for the third quarter of 2008 were $4.8 million compared to $277 thousand for the same period in 2007.
Including the applicable non-cash charges as stated above, net loss for the first nine months of 2008 was $9.4 million, or $0.46 per share, compared to a net loss of $3.6 million, or $0.22 per share, for the same period in 2007.
Including the applicable non-cash charges as stated above, net loss for the third quarter of 2008 was $7.1 million or $0.33 per share, compared to a net loss of $1.4 million, or $0.07 per share, for the same period in 2007.
As of September 30, 2008, Evogene had $32.1 million in cash, cash equivalents, cash deposits and short-term marketable securities. This includes Monsanto's initial investment of $18 million and an upfront payment pursuant to the research collaboration agreement.
About Evogene
Evogene is a world leading developer of improved plant traits. The company's proprietary product development platform combines state-of- the-art computational gene discovery technology (The 'ATHLETE'), plant and field validation capabilities and unique selection systems. Evogene's current programs focus on the improvement of key plant traits, such as yield and stress tolerance, and the improvement of plants specifically for biofuel uses. Evogene has collaboration and licensing agreements with world leading companies in the agro-biotech and alternative energy industries. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange (TASE:EVGN). For additional information, please visit Evogene's website at www.evogene.com.
This press release contains "forward-looking statements." These statements include words like "may," "expects," "believes," "scheduled" and "intends," and they describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Evogene Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.