Evogene has reported sharply lower operating expenses and a narrower annual loss in 2025 after a sweeping strategic shift that saw the company streamline operations, exit non-core activities, and focus its business on AI-powered small-molecule discovery for pharmaceutical and agricultural markets.

 

The computational chemistry company said the transformation centers on ChemPass AI, its generative AI platform designed to discover and optimize novel molecules.

 

“During 2025, we executed a clear and decisive strategic shift. After a comprehensive review of our technology assets, target markets, and capital allocation priorities, we sharpened our focus to drive sustainable long-term value by concentrating on a single proprietary tech-engine – ChemPass AI – for small-molecule discovery and optimization,” said Ofer Haviv, Evogene’s president and CEO.

 

“We streamlined our operations to focus on two high-impact markets: pharma and agriculture, while discontinuing non-core activities, divesting misaligned assets, resizing the organization, and aligning our business development efforts with this focused strategy.”

 

Evogene said ChemPass AI was significantly expanded during 2025 through internal development and collaborations with Google Cloud.

 

The company said its first collaboration produced a foundation model trained on 38 billion molecular structures, delivering approximately 90% design precision, which it estimates triples previous accuracy benchmarks. A second partnership launched in February 2026 integrates AI agents through Google Cloud’s Vertex AI platform to automate workflows and improve candidate quality.

 

According to Haviv, the platform’s strength lies in generating novel chemical structures while simultaneously optimizing multiple key parameters early in the discovery process.

 

“ChemPass AI's competitive advantage combines two core strengths: generating truly novel molecules and simultaneously optimizing multiple critical parameters from the outset,” he said.

 

As part of the overhaul, Evogene shed several business lines and scaled back operations across its portfolio.

 

“During 2025, Lavie Bio was acquired by ICL. In early 2026, Biomica licensed its lead oncology candidate, BMC128, to Lishan Pharmaceuticals. No additional activity is expected from these companies,” Haviv said.

 

“At the same time, Evogene has retained select activities with meaningful value potential that are not at the core of our new strategy, including Casterra, and intends to continue supporting these activities until their full potential is realized.”

 

The company also integrated its ag-chemical subsidiary AgPlenus into core operations to leverage the ChemPass AI platform for herbicide and fungicide development, supported by partnerships with Bayer and Corteva.

 

 

Evogene’s restructuring led to a sharp drop in expenses. Operating expenses fell to $13.8 million in 2025, down from $22.0 million in 2024. Fourth-quarter operating expenses declined to $3.2 million, compared with $4.3 million a year earlier.

 

Revenue for 2025 totaled $3.9 million, down from $5.6 million in 2024, primarily due to reduced revenue from AgPlenus following the completion of its collaboration with Corteva and the absence of a one-time payment recorded in early 2024. Fourth-quarter revenue dropped to $0.3 million, largely due to lower seed sales at Casterra.

 

The company reported cost of revenue of $4.1 million, up from $2.4 million a year earlier, driven mainly by a $2.2 million inventory impairment at Casterra after it shut down operations in Kenya and shifted its focus to Brazil.

 

Evogene’s operating loss narrowed to $14.0 million in 2025, compared with $18.8 million in the previous year.

 

Net loss for the year was $7.8 million, sharply reduced from $18.1 million in 2024, aided by lower operating costs and a gain tied to the sale of Lavie Bio assets to ICL.

 

As of December 31, 2025, Evogene held $13.0 million in cash, cash equivalents and short-term deposits. Fourth-quarter cash use totaled about $3.0 million, or $2.4 million excluding Lavie Bio and Biomica.

 

In February 2026, the company also secured $3.4 million in gross proceeds through the early exercise of existing warrants by an investor.

 

Looking ahead, Haviv said the company’s future hinges on advancing its own AI-designed molecules through strategic partnerships and internal development.

 

“Looking ahead, the advancement of proprietary small-molecule product candidates is at the heart of Evogene's mission,” he said.

 

“Supported by ChemPass AI, our differentiated generative AI tech-engine, disciplined capital allocation across two high-potential markets, and strong strategic partnerships, we believe Evogene is well-positioned on a clearly defined and focused path toward sustainable long-term value creation.”