Earnings Call Transcript - EVGN Q3 2025

Operator, Operator

Welcome to Evogene's Third Quarter 2025 Results Conference Call. As a reminder, this conference is being recorded on November 20, 2025. Before we begin, we'd like to caution that certain statements made during this earnings conference call by Evogene's management will constitute forward-looking statements that relate to future events. This presentation contains forward-looking statements relating to future events and Evogene Ltd, the company may from time to time make other statements regarding our outlook or expectation for future financial or operating results and/or other matters regarding or affecting us that are considered forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995, the PSLRA, and other securities laws as demand. Statements that are not statements or historical fact may be deemed to be forward-looking statements. Such forward-looking statements may be identified by the use of such words as believe, expect, anticipate, should, plan, estimate, intend and potential or words of similar meaning. We are using forward-looking statements in this presentation when we discuss our value drivers, commercializations, efforts and timing, product development and launches, estimate market sizes and milestones pipeline as well as our capabilities and technology. Such statements are based on current expectations, estimates, projections and assumptions described opinions about future events, involve certain risks and uncertainties, which are difficult to predict and are not guarantees of future performance. Readers are cautioned that certain important factors may affect the company's actual results and could cause such results to differ materially from any forward-looking statement that may be made in this presentation. Therefore, actual future results, performance or achievements, and trends in the future may differ materially from what is expressed or implied by such forward-looking statements, due to a variety of factors, many of which are beyond our control, including without limitation, the current war between Israel and Hamas and any other adverse impact that it may have on economic activity in Israel, due to the calling up of a large number of reserve soldiers or the incurrence of debt to pay for the high cost of the war and any accompanying future uncertainties for the security of the company's operations in Southern Israel, as well as those additional factors described in greater detail in Evogene's annual report on Form 20-F and in other reports Evogene files with and furnishes to the Israel Securities Authorities and the U.S. Securities and Exchange Commission, including those factors under the heading, Risk Factors. Except as required by applicable securities law, we disclaim any obligation or commitment to update any information contained in this presentation or to publicly release the results of any revisions to any statement that may be made to reflect future events and developments or changes in expectations, estimates, projections and assumptions. The information contained herein does not constitute a prospectus or other offering documents, nor does it constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of the company, nor shall the information or any part of it or the fact of its distribution from the basis of, or be relied on in connection with, any action, contract or commitment relating thereto or to securities of the company. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our product or services. With us on the line will be Ofer Haviv, President and CEO of Evogene; and Yaron Eldad, CFO of Evogene. Now I will turn the call over to Ofer Haviv. Mr. Haviv, please go ahead.

Ofer Haviv, President and CEO

Thank you for joining Evogene's Third Quarter 2025 Analyst Call. In today's call, I'd like to focus on the company's new strategy, which I partly shared at our previous quarterly calls and its current implementation. I will also provide an update on our expectation to start breaking the business benefits of the strategic shift over the coming year. Following my remarks, our CFO, Yaron Eldad will present the financial results, and we will then open the call for questions. But as usual, I will start with the financial highlights. During the first nine months ending September 30, 2025, Evogene advanced its strategic transition towards establishing itself as a leader in computational chemistry, with a focus on the generative design of small molecules for the pharmaceutical and agriculture industries. As part of this new strategy, the company executed an organizational change and cost reduction plan, most of which was completed by the end of the second quarter. The impact of these measures is reflected in the third quarter results, with total operating expenses, net, of approximately $2.9 million compared to $6.6 million in the same period of 2024. This new expense level is expected to be maintained going forward. The financial results of Lavie Bio, Evogene's subsidiary, for the nine- and three-month ending September 30, 2025, are presented as a single-line item in Evogene's consolidated P&L statement for 2025. Its results are included under the line titled: income or loss from discontinued operations net, this accounting presentation includes the sale of the majority of Lavie Bio's activities to ICL, which was completed in July 2025, and together with the sale of MicroBoost for Ag, generated income of approximately $7.9 million in the third quarter of 2025. In the nine months ending September 30, 2025, revenues amounted to approximately $3.5 million, compared to $4 million in the same period last year. The decrease was primarily driven by lower revenue from AgPlenus' activity, which included a one-time payment from Bayer during the first quarter of 2024, partially offset by an increase in seed sales generated by Casterra. Total research and development expenses in the nine months ending September 30, 2025, were approximately $5.9 million, compared to approximately $9.8 million in the same period of 2024. The decrease is primarily attributed to a reduction in Biomica's and Evogene R&D activities and the discontinuation of Canonic's operations. Sales and marketing expenses in the nine months ending September 30, 2025, totaled approximately $1.1 million, compared to approximately $1.6 million in the same period of 2024. The decrease is mainly due to reduction in headcount across the subsidiaries. In the nine months ending September 30, 2025, total operating loss was approximately $8.8 million, compared to approximately $15.3 million in the same period of 2024. This decrease is mainly due to the reduction in the subsidiaries' and Evogene's activity. As of the end of the third quarter of 2025, the company's cash and short-term bank deposit balance was approximately $16 million. This cash balance reflects the proceeds from the sale of Lavie Bio's assets and the MicroBoost AI for Ag tech-engine to ICL. The following are the business highlights of our subsidiary and related parties in the past quarter. Lavie Bio completed the transfer of its team and the majority of its activity to ICL. Its collaboration agreement with an existing partner continues with positive results. The distribution of funds to its shareholders with Evogene as the majority holder is advancing. No additional activities are expected. Biomica's clinical trial continues according to plan and is expected to be completed in early 2026. Currently, only one patient is in the trial and the efforts to secure partners to lead Biomica's current development program continue. No additional activity is expected. Last week, Casterra partnered with Fantini to advance agricultural mechanization for scalable commercial castor farming. The collaboration focuses on integrating high-yield castor varieties with advanced mechanized solutions, including harvesting and threshing technologies. In addition, the company is investing efforts in strengthening its position in Brazil's castor farming ecosystem. AgPlenus underwent organizational restructuring, including the completion of workforce reductions. Evogene's related party, Finally Food, which is developing casein protein in potatoes, announced raising $1.2 million led by CBC Group and signed a commercial agreement with it. Now I would like to continue with Evogene's new strategy and its implementation, which includes AgPlenus' activity for the agriculture industry. The following slides reflect Evogene's new messaging and appearance supporting its new strategy. At Evogene, we are on an ongoing mission to redefine the future of science and business. By harnessing the power of our proprietary generative AI tech-engine, ChemPass AI, we designed novel groundbreaking small molecules, highly potent and precisely optimized across multiple parameters to transform the pharmaceutical and ag-chemical industries. Our goal is not just innovation, but meaningful beneficial impact for our world. Headlining this slide is the phrase real-world innovation. What do we mean by it? One of the greatest challenges in developing products in life sciences, from pharmaceuticals to ag-chemicals is the gap between real-world challenges and innovative scientific discovery. Anyone involved in life science product development knows this challenge well. It's reflected in the high failure rate of products that start full of innovative promise but ultimately fall short of one or more critical criteria that often emerge only in later stages of development. We believe now is the time for change, for bridging the gap between innovation and real-world impact. The key lies in harnessing the possibilities of the computational revolution, transforming our world and above all, in unlocking the power of AI. Today's computational capabilities allow for simultaneous analysis of countless parameters, achieving a level of scientific depth that was once beyond reach. They empower us to design solutions that integrate scientific innovation with commercial viability, pushing beyond the limits of traditional trial-and-error product development. Computational technology serves as the bridge connecting scientific discovery to commercial success. And this is exactly what we focus on. We call our approach real-world innovation. Evogene is structured on three interconnected pillars: our groundbreaking Gen AI best technology, ChemPass AI, which serves as the competitive advantage for our offering in the pharmaceutical and agriculture industries; second, our established activity in agriculture through our subsidiary, AgPlenus, where we have already achieved results in collaboration with leading global companies in the development of ag-chemical products; and our recent expansion into the pharma industry where ChemPass AI significantly increased the likelihood of the discovery of novel molecules with the highest potential to become breakthrough commercial drugs. I will begin with a brief introduction to ChemPass AI, which is at the core of our operations. To understand the unique value of ChemPass AI, it is essential to consider the background of the product development process and its inherent challenges. Here is a simplified overview of how a small molecule product such as a drug or pesticide is developed. It starts with identifying the target protein we aim to inhibit, followed by searching for chemical molecules capable of binding to it from an almost infinite number of possibilities. During the discovery and optimization phase, the objective is to design the most promising candidate for advancement into the next stage of development. These later stages are time-consuming and costly, so choosing wisely early on is crucial. It's also worth noting that once these advanced stages are reached, the chemical structure of the molecules is basically set. This is the version that hopefully will eventually make it all the way to market. Therefore, very early in the process, right after optimization, we commit to the molecule we believe has the highest probability of becoming the final product. The outcome of this process is often frustrating. Statistically, only a small fraction of promising molecules that make it into advanced development actually reach the market. Success rates are usually somewhere between 3% and 10%, depending on the industry. This naturally raises the question: what causes the success rate to be so low? A major reason for the low success rate is that a product must meet many often conflicting parameters to reach commercialization. Traditional methods for selecting molecules and addressing multiple parameters are very limited, as a result, early development usually optimizes only a few parameters, one at a time, creating a major bottleneck to commercial success. Overcoming this challenge presents a significant strategic opportunity. Today, advancing computational technologies allow for the simultaneous optimization of multiple parameters with the potential to greatly improve development efficiency and success rates. That brings us to ChemPass AI, the cutting-edge tech-engine developed here at Evogene, built to transform the way we design small molecules that are precisely tailored to specific target proteins. What makes our approach truly unique is not just the molecules we design, but the intelligence behind them. Each molecule must overcome a complex web of scientific, regulatory, and commercial challenges. To become a real product, a molecule has to do more than just work; it must excel across multiple dimensions simultaneously. And that's exactly what ChemPass AI was built to achieve. Our engine designs molecules that meet three critical requirements: high potency, molecules that strongly and effectively modulate their target protein; novelty, expanding into novel chemical space, ensuring the creation of strong, defensible intellectual property; and multiparameter excellence, molecules that perform across the many requirements needed for real-world commercial success. With ChemPass AI, we are not just designing molecules, we are designing the next generation of breakthrough products, closing the gap between innovation and market impact. That's the power and the promise of ChemPass AI. We are advancing a multi-year development program continuously adding new capabilities to our generative AI tech-engine. As a result, the number of parameters we can address keeps growing, and the precision of the molecules designed to meet the required criteria continues to improve. The more the system is used, the smarter and more accurate it becomes. To accelerate the ChemPass AI development process, we are collaborating with major technology companies such as Google Cloud, as disclosed in May this year, and we intend to continue doing so. Additionally, we intend to explore the possibility of making certain parts of our technology accessible to researchers through such companies, which have a broad market reach. Of course, we will be happy to update you on these developments in the future. Our vision comes to life through the technology we have developed. Now I'd like to present the implementation of our technology through our agriculture and pharma activities. Starting with agriculture, a field we entered back in 2018 through the establishment of our subsidiary, AgPlenus. Since then, AgPlenus has achieved significant milestones, including strategic collaborations with leading industry players such as Bayer and Corteva. Agriculture is a huge global market valued in 2024 at $79 billion, including three main segments: herbicides, insecticides, and fungicides. A single product in this space can generate anywhere from hundreds of millions to billions of dollars in sales annually. The industry is in great need of new products, yet developing them comes with significant challenges, an increase in pest resistance, regulatory requirements, an urgent need for new modes of action, and a decreased rate in the discovery of new pesticides due to lack of innovation. To address the challenges of developing new products in ag-chemistry, revolutionary technologies are needed. Computational chemistry can drive real-world impact in agriculture. And this is the mission of AgPlenus, Evogene's wholly owned subsidiary. AgPlenus discovered and optimized candidates for crop-protection products and has a robust product development pipeline through collaborations with leading global agriculture companies as well as internally founded programs. We are very proud of AgPlenus' achievements reflected in its strategic collaboration with two world-leading companies, Bayer and Corteva. Both collaborations focused on developing new herbicides, each targeting a different protein that represents a novel mode of action. This innovation is essential to addressing the growing resistance of pests to existing solutions. The plant images shown in this slide clearly demonstrate the effect of the small molecules being advanced through those collaborations. AgPlenus is also advancing independent projects within its internal pipeline. Its main focus today is on developing fungicide candidates against Septoria, a fungus causing major damage to field crops, especially wheat. AgPlenus already has several small molecules showing very promising results in lab tests, which are now moving to greenhouse trials to test their performance on plants. Looking ahead, AgPlenus plans to further strengthen and expand its collaboration with existing partners, establish new partnerships, leveraging AgPlenus' pipeline innovations, and broaden the scope of programs within its internal development portfolio. These initiatives are expected to generate cash inflows for the company through upfront payments, R&D reimbursements, and as our products advance through development, milestone payments and potential royalties. We look forward to providing further updates on both collaborative efforts and internal pipeline progress. Now I will continue with our efforts to capture the value of our tech engine, ChemPass AI, in the pharma industry, focusing on the market segment of drugs based on small molecules. While small molecule-based drugs are a lucrative opportunity, we believe now is the right time to leverage our technology for it. Small molecule-based drugs represent nearly 60% of the global pharmaceutical market, valued at approximately $780 billion. Even more exciting is the current momentum of AI designed small molecules that are advancing through various companies' pipelines. More than 60 new candidates with an expected annual growth rate exceeding 150%. This rapid expansion is expected to drive the AI drug discovery market to nearly $190 billion by 2034. As I previously mentioned, the traditional process of developing drugs based on small molecules is expensive, lengthy, and has a low success rate. This slide illustrates the high numbers of failures that occur during the transition from one stage of clinical trial to the next. We expect that the smart use of our tech engines, ChemPass AI, will lead to the initiation of clinical trials for highly active, innovative small molecules, which most importantly, meet the maximum number of the defined drug's key parameters. As a result, we expect the probability of successfully progressing from one development stage to the next to improve, and the number of candidates that complete the development process and become successful commercial products will increase significantly. To capture the value of ChemPass AI's offering in pharma, our business strategy is designed to maximize potential while minimizing risk. We hope to partner with leaders in pharma, biotech companies, and academia that bring domain-specific knowledge, forming collaboration agreements. Through this strategic alliance, we aim to co-develop innovative products. The expected upside for Evogene stems from R&D fees, milestone payments, and revenue-sharing mechanisms of the end product. In August, our Pharma division announced a collaboration with Professor Ehud Gazit of Tel Aviv University to develop new therapeutics for metabolic diseases linked to the self-assembly of small metabolites such as tyrosinemia and gout. The partnership combines Evogene's ChemPass AI generative design platform with Professor Gazit's expertise in molecular self-assembly to discover and optimize novel small molecules that can inhibit harmful metabolite aggregation. This collaboration aims to accelerate the development of first-in-class therapies that address the underlying molecular causes of accumulated metabolic diseases, offering new hope to patients worldwide. This collaboration exemplifies the type of strategic partnership we are pursuing, leveraging Evogene's advanced computational capabilities alongside existing scientific knowledge to create meaningful synergies that can drive breakthrough discoveries in drug development. Over the coming year, we expect to announce additional collaborations of this nature, further strengthening Evogene's position in this field and enhancing recognition of our unique technological edge. We believe such partnerships will provide the validation and visibility needed to enable broader and more complex collaboration with leading biotech and pharmaceutical companies, opening new growth opportunities for Evogene. We look forward to providing future updates on our collaborative efforts. To summarize Evogene's strategy, we are using ChemPass AI, which is at the core of our offering and our main competitive advantage to drive real-world innovation for two strategic markets: pharma for the development of small molecule-based drugs, agriculture for the development of crop protection chemicals. To realize this vision, we operate through a pharma division focused on pharmaceutical applications and through our wholly owned subsidiary, AgPlenus, focused on ag-chemical solutions. Each develops its product either in collaboration with leading global companies or independently. In the near future, we expect the following: Continuing to strengthen and expand ChemPass AI and maintaining our technological edge, signing additional collaboration agreements with biotech and later on with pharma partners for small molecule drug development, and expanding collaboration with existing and new leading ag-chem companies while growing AgPlenus' internal crop protection pipeline. With this, I conclude my part, and I will now hand the call to our CFO, Yaron Eldad, to present the financial results.

Yaron Eldad, CFO

Thank you, Ofer. The financial results for the first nine months of 2025 and the capital gain of Lavie Bio, a subsidiary of Evogene, are presented as a single line item in Evogene's consolidated P&L statement for the first nine months of 2025. Its results are included under the line titled: income or loss from discontinued operations. This accounting treatment reflects the classification of Lavie Bio's operations and its capital gain as discontinued following the sale of the majority of its activities to ICL which was completed in July 2025. During the first half of 2025, Evogene implemented a cost reduction plan, most of which was completed by the end of the second quarter. The impact of these reductions is reflected in the first nine months results. As of September 30, 2025, Evogene held cash, cash equivalents, and short-term bank deposits of approximately $16 million. The consolidated cash usage during the third quarter of 2025, excluding the cash generated from the sale of the majority of Lavie Bio's assets and the sale of MicroBoost AI for Ag to ICL, was approximately $3.5 million. Excluding Lavie Bio and Biomica, Evogene and its other subsidiaries used approximately $2.3 million in cash during the third quarter of 2025. Revenues for the nine months of 2025 were approximately $3.5 million, compared to approximately $4 million in the same period the previous year, reflecting a decrease of approximately $0.5 million. The decrease was primarily driven by lower revenue recognized from AgPlenus' activity, which included a one-time payment from Bayer during the first quarter of 2024, and revenues recognized from the collaboration agreement with Corteva, partially offset by an increase in seed sales generated by Casterra during the first quarter of 2025. Revenues for the third quarter of 2025 were approximately $300,000, a decrease compared to approximately $1.7 million in the same period last year. The decrease was mainly due to reduced seed sales generated by Casterra during the third quarter of 2025. Research and development expenses, net of non-refundable grants, for the nine months of 2025 were approximately $6.2 million, a decrease of approximately $3.6 million compared to $9.8 million in the nine months of 2024. The decrease was primarily due to reduced R&D expenses in Biomica, and the cessation of Canonic's operation at the beginning of 2024. In the third quarter of 2025, R&D expenses were approximately $1.4 million, down from approximately $3.3 million in the same period of 2024. This decrease is mainly attributed to decreased expenses in Biomica. Sales and marketing expenses for the nine months of 2025 were approximately $1.2 million, a decrease of approximately $400,000 compared to approximately $1.6 million in the same period last year. The decrease was mainly due to reductions in Evogene, AgPlenus, and Biomica personnel costs. Sales and marketing expenses for the third quarter of 2025 were approximately $400,000, reflecting a slight decrease of approximately $100,000 compared to approximately $500,000 in the third quarter of 2024. General and administrative expenses for the nine months of 2025 decreased to approximately $3.4 million from approximately $5.7 million in the same period last year. This decrease is mainly attributable to expenses recorded during the nine-month period of 2024, and related to a provision for doubtful debt for one of Casterra's seed suppliers, as well as transaction costs associated with Evogene's fundraising in August 2024. General and administrative expenses for the third quarter of 2025 decreased to approximately $1.1 million compared to approximately $2.8 million in the same period of the previous year, primarily due to decreased expenses in Casterra and Evogene, as mentioned above. Other income of approximately $200,000 was recorded in the first quarter of 2025 as part of the accounting treatment related to a sublease agreement. The decision to cease Canonic's operation in the first half of 2024 resulted in other expenses of approximately $500,000, primarily due to impairment of fixed assets recorded in the first quarter of 2024. The operating loss for the nine months of 2025 was approximately $8.8 million, a significant decrease from approximately $15.3 million in the same period of the previous year, mainly due to the decreased operating expenses, partially offset by the decreased revenues as mentioned above. The operating loss for the third quarter of 2025 was approximately $2.7 million, a decrease from approximately $5.9 million in the same period of the previous year, primarily due to the decreased operating expenses, partially offset by decreased revenues as mentioned above. Financing income net for the nine months of 2025 was approximately $744,000 compared to financing expenses net of $448,000 in the same period of the previous year. The increase in financing income is mainly associated with accounting treatment of pre-funded warrants and warrants issued in August 2024 fundraising. As a result, during the nine months of 2025, the company recorded financial income, net, related to pre-funded warrants and warrants of approximately $674,000, as compared to financing expenses, net, of approximately $881,000 in the same period of 2024. Financing income net for the third quarter of 2025 was approximately $12,000, compared to financing expenses net of approximately $821,000 in the same period of the previous year. The increase in financing income is mainly associated with accounting treatment of pre-funded warrants and warrants issued in August '24 fundraising, as mentioned above. Income from discontinued operations net for the nine months of 2025 was approximately $5.7 million, compared to a loss of approximately $2.2 million in the same period of 2024. For the third quarter of 2025, income from discontinued operations net was approximately $7.9 million, compared to a loss of approximately $1.5 million in the quarter of the previous year. This amount primarily reflects the financial results of Lavie Bio and expenses related to the development and maintenance of MicroBoost AI for Ag, which are presented as a single-line item in the consolidated statement of profit and loss. Following the sale of the majority of Lavie Bio's assets as well as Evogene's MicroBoost AI for Ag to ICL, the company recognized a gain on sale of approximately $6.4 million, which is also included in the income or loss from discontinued operations net for the nine-month and three-month periods ended September 2025. All prior period amounts have been reclassified to conform to this presentation. The net loss for the nine months of 2025 was approximately $2.5 million, compared to approximately $18 million in the same period last year. The $15.5 million decrease in net loss was primarily due to decreased operating expenses, income derived from discontinued operations due to the asset sale to ICL net, and increased financial income net, partially offset by reduced revenues. The net income for the third quarter of 2025 was approximately $5.2 million, compared to a net loss of approximately $8.2 million in the same period last year. This improvement was primarily due to income derived from discontinued operations net, due to the asset sale to ICL, decreased operating expenses, and increased financing income net, partially offset by reduced revenues net, as mentioned above.

Operator, Operator

The first question is whether interest in AI ChemPass has increased following the recent NVIDIA and Eli Lilly AI drug discovery partnership. Additionally, could you explain why Evogene's proprietary database should attract similar interest from other companies in the pharmaceutical and technology sectors?

Ofer Haviv, President and CEO

Thank you for your question. This is Ofer. The recent announcements from NVIDIA and Eli Lilly have certainly heightened interest and trading activity in companies involved in AI for the pharmaceutical sector. However, I believe that even without these announcements, this area would still attract attention, as it's one of the most dynamic fields in the pharma industry right now. I see this as the start of a significant trend that will be lasting. Regarding Evogene, we are offering something quite distinctive. We recently attended a conference in Europe, where we noticed a growing interest in our presentations to prospective partners. We have been showcasing our ChemPass technology in the pharma sector for about a year now and are witnessing increasing interest in our work. Additionally, in the agricultural industry, we have secured notable collaboration agreements with Bayer and Corteva, which serve to validate our technology prior to further engagement. What sets Evogene apart, in my view, is our multiparameter approach and the expertise of our computational team, which comprises individuals with PhD degrees in genomics. They are equipped to design an AI tech-engine from the ground up, known as the foundation model. We collaborated with the Google team to create a unique AI engine tailored specifically for small molecule discovery and optimization, a capability not commonly found elsewhere. Furthermore, our method of integrating information from our partners distinguishes us from other companies. We do not adhere to a one-size-fits-all model; instead, we customize our technology for each partner based on their specific needs and program requirements. This approach may take a bit longer, but we anticipate that the results we provide will outperform those derived from a universal strategy. In summary, our technology is distinctive, and as we continue to engage with potential partners, our confidence grows that we are offering something unique that is not currently available from other companies.

Operator, Operator

The next question, how close are you to unlocking partners with AI ChemPass?

Ofer Haviv, President and CEO

As I mentioned, we are seeing an increased interest in our offerings. In the early years and at the start of this year, when we attended conferences, we returned with only a few potential candidates. Now, the list of potential candidates has grown significantly. I believe that we will start to announce more collaboration agreements with biotech companies at the beginning of next year. We will be hearing more about new collaborations, starting with small biotech companies and possibly academic institutions, followed by mid-sized biotech companies. Ultimately, we aim to engage with pharmaceutical companies through significant collaboration agreements, though this may take some time. However, we hope to announce collaborations with small biotech companies at the start of next year.

Operator, Operator

The next question. Last quarter, you spoke to doing more IR to drive awareness to the company, but very little seems to be done. What's the IR strategy going forward? And can we rely on it being implemented in short order?

Ofer Haviv, President and CEO

It's an interesting question because we just discussed our approach in presenting the company strategy in this analyst call. It has taken a bit longer than we expected, but I think we all agree that the answer to this question is yes. This relates to the question that was raised earlier. For the first time in this analyst call, we are presenting Evogene in a new structure, focusing on ChemPass AI, its utilization in agriculture and pharmaceuticals, and the collaborations we've engaged in. Moving forward, this will be the main messaging we want to share with investors. While we will continue to discuss our subsidiary, Casterra, our primary focus will be on what I just described. We are planning to initiate roadshows and participate in conferences next year, which will include not only investor relations meetings but also professional events. Starting in December, we plan to promote Evogene and our new story, and we hope to be involved in more investor relations events.

Operator, Operator

The next question, could you highlight upcoming catalysts over the coming 6 to 12 months? Specifically, when could we expect the first partnership?

Ofer Haviv, President and CEO

I think I partially addressed this question. From my perspective, we can envision three types of press releases related to the Evogene new strategy: new collaborations in the Pharma division, meaning that additional biotech companies will use our technology to discover and optimize small molecules for specific targets; then expansion of the existing collaboration or new collaboration in the Ag division. I'm talking here, of course, about AgPlenus. Third, and this is something that I think is quite important for us to mention, exactly as we engage with Google in building an important piece in our tech engine, I'm expecting and hoping that there will be additional announcements like this one with companies like Google, the same size of Google or maybe even with Google. I think our belief is that we definitely should accelerate the development of ChemPass AI through collaboration with a company like Google, in order to keep our competitive advantage in the future as well.

Operator, Operator

The next question. What type of revenue level can we expect for castor seeds in Q4 and for 2026?

Ofer Haviv, President and CEO

We can't disclose this information. What I can say is that about Casterra, they are now talking with companies, strategic companies in the field of castor oil, companies that can really have a significant effect on the company revenue in the future. When this discussion will materialize, of course, we will share this information with our investors. But I think this is good news that even in the past, we were talking about specifically one partner that we already disclosed its name, ENI. But I think that today, we believe that there is additional opportunity for companies that can have the same effect on Casterra that we are now talking with them. And there is more than one like this. So when this discussion will materialize into agreement, of course, we'll be more than happy to share this information with our investors.

Operator, Operator

The next question. How excited are you about AI ChemPass compared to all your other times at Evogene?

Ofer Haviv, President and CEO

I believe this is a very interesting question. For many years, Evogene primarily focused on the agriculture sector, and we made some significant technological advancements. However, for various reasons, the agriculture sector hasn’t provided the financial results we aimed for. The situation in the pharmaceutical industry is different. While we still have a presence in agriculture through AgPlenus, our main focus will be on the pharma sector, which I believe is the right decision for Evogene. Additionally, the team at Evogene consists largely of individuals with PhD degrees, which is crucial in the field of AI. To be competitive in AI, a deeper understanding of computational science is necessary beyond just undergraduate or master’s degrees. I truly believe we have the right team to tackle the challenges ahead. Based on our initial validations and discussions at the recent bio conference, I would like to express that if we can replicate the success we achieved in agriculture within the pharmaceutical industry, our company will be one that everyone will want to be a part of. We have previously collaborated with all major companies in the agriculture sector, and I hope to achieve similar success this time, expecting the financial rewards to follow the efforts we put in.

Operator, Operator

There are no further questions at this time. Mr. Haviv, would you like to make a concluding statement?

Ofer Haviv, President and CEO

Yes, I would like to thank everybody for participating in this analyst call. For me, it was a very unique presentation, where we presented for the first time, the new Evogene story, with the new presentation. I really hope that in the next analyst call, we will have much more to share with you, along the guidelines that I just now described.

Operator, Operator

Thank you. This concludes Evogene's Third Quarter 2025 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.