Evogene Ltd. (EVGN): BCG Matrix [Dec-2025 Updated]

You're trying to make sense of Evogene Ltd.'s portfolio following their major shift to computational chemistry, and honestly, the BCG Matrix cuts right through the noise. As a financial analyst who's seen a few pivots, I've mapped their segments to show you exactly where the future growth lies versus where the stable cash is coming from. We'll look at how the high-potential ChemPass AI platform competes with the reliable income from Casterra Ag, especially now that they've cleared out legacy assets, reducing the nine-month 2025 operating loss to $8.8 million. Keep reading to see which parts of Evogene Ltd. are Stars, Cash Cows, Dogs, or Question Marks right now.

Background of Evogene Ltd. (EVGN)

You're looking at Evogene Ltd. (EVGN) right as it's making a significant pivot, so understanding its core business now is key. Evogene Ltd. is a pioneering company in computational chemistry. It specializes in the generative design of small molecules, which is a fancy way of saying they use AI to design new chemical compounds for both the pharmaceutical and agricultural industries.

At the heart of their operation is ChemPass AI, which they call a proprietary generative AI engine. This platform is designed to create novel, highly potent small molecules that are optimized across several critical factors. The goal here, which is a big deal, is to significantly improve success rates while cutting down on the time and cost associated with development.

Evogene Ltd. built its foundation on three unique technology engines, or tech-engines. You have MicroBoost AI for microbe-based products, ChemPass AI for small molecules, and GeneRator AI for genetic elements. However, the current strategic focus, as stated by President & CEO Ofer Haviv in late 2025, is becoming a focused, AI-driven company built around that ChemPass AI engine.

To achieve this focus, Evogene Ltd. has been streamlining its portfolio through divestitures and restructuring. For instance, they sold the majority of their subsidiary Lavie Bio Ltd.'s activities to ICL in July 2025. That deal, along with the sale of the MicroBoost AI for Ag tech-engine, generated significant, though one-time, income. They also ceased operations for Canonic during the first half of 2024.

The company still operates through key subsidiaries that align with its tech-engines. AgPlenus Ltd. focuses on ag-chemicals using ChemPass AI, while Biomica Ltd. is a clinical-stage company working on microbiome-based therapeutics powered by MicroBoost AI. Then there's Casterra Ag Ltd., which uses GeneRator AI to develop and market superior castor seed varieties.

Looking at the financials as of the third quarter ended September 30, 2025, you see the impact of these changes. The consolidated cash balance stood at approximately $16.0 million. For the first nine months of 2025, total revenues were approximately $3.5 million, a slight dip from the $4.0 million seen in the same period the prior year. The operating loss for those nine months improved significantly to approximately $8.8 million, down from about $15.3 million in the first nine months of 2024, thanks to cost reduction plans.

It's worth noting that the Q3 2025 net income was approximately $5.2 million, a big swing from the net loss of approximately $8.2 million the year before. This positive result was primarily due to income derived from discontinued operations, specifically the asset sales to ICL, which generated approximately $7.9 million in Q3 2025 alone. Honestly, you're looking at a company that's shedding legacy businesses to fund its core AI platform. Finance: draft 13-week cash view by Friday.

Evogene Ltd. (EVGN) - BCG Matrix: Stars

You're looking at Evogene Ltd. (EVGN) as it pivots hard into computational chemistry, making its core technology the primary focus for future growth. In the BCG framework, Stars operate in high-growth markets and hold a strong relative market share, demanding significant investment to maintain that lead. For Evogene, this quadrant is defined by the strategic placement of its generative AI engine.

ChemPass AI Platform is positioned here. This is the core generative AI engine for small molecule design, and the market it targets is massive. While we don't have the exact 2025 market share data, the potential is clear: the pharma market it targets is projected to reach nearly $190 billion by 2034, indicating a high-growth environment. The platform itself is built on a foundation model trained on approximately 38 billion molecules, which is a concrete measure of its scale and potential differentiation in the drug discovery space.

The Star status is supported by the company's explicit strategic direction. Evogene is now a focused, AI-driven company built around this engine. This means current cash burn is being directed to sustain and advance this leadership position, which is the classic Star strategy-investing heavily to secure future Cash Cow status.

Here's a quick look at the financial context as of the end of the third quarter of 2025, which shows the cash position supporting this investment phase:

The High-potential collaborations driven by ChemPass AI in pharma represent the expected future high-share revenue stream. The company is actively working to enhance ChemPass AI's value proposition for pharma and biotech partners. This focus is the mechanism by which Evogene Ltd. intends to capture high market share in this growing vertical.

The integration of AgPlenus's new ag-chemical candidates into the core business also falls under this Star category, as they are powered by ChemPass AI, aiming for high share in crop protection. However, the revenue recognition in the first nine months of 2025 reflects a temporary dip, as revenues were lower compared to the prior year, which included a one-time payment from Bayer in the first quarter of 2024. This is typical for high-growth areas where milestone payments can skew short-term revenue figures.

The strategic shift itself, focusing R&D on this computational chemistry vertical, is the action Evogene is taking to ensure these assets become Cash Cows when the market growth matures. You can see the investment commitment in the R&D spend relative to the overall operating loss.

Key elements defining the Star positioning:

• ChemPass AI is the core engine for small molecule discovery.
• Platform trained on approximately 38 billion molecules.
• Strategic integration of AgPlenus activities into Evogene.
• Focus on securing licensing agreements in the pharma sector.

If the company successfully maintains its technological lead and converts its pipeline progress into major commercial deals, these Stars are definitely set up to transition into robust Cash Cows as the high-growth phase of AI-driven drug and agrochemical discovery stabilizes.

Evogene Ltd. (EVGN) - BCG Matrix: Cash Cows

Cash Cows are business units or products with a high market share but low growth prospects, providing the cash required to fund other areas of the business. Evogene Ltd. currently has elements that fit this profile, primarily through established revenue streams and significant, non-core asset monetization.

Casterra Ag: Castor seed sales drove the increase in H1 2025 revenues to approximately $3.2 million, providing a source of stable cash flow. For the nine months ending September 30, 2025, total revenues were approximately $3.5 million, a decrease from approximately $4.0 million in the same period last year. The third quarter of 2025 saw revenues of approximately $0.312 million, down from approximately $1.74 million in the third quarter of 2024.

The Casterra business model is focused on generating value through its elite castor seed varieties, which have an exceptional germination rate of approximately 90%. This business is expanding into new markets, having signed strategic agreements with seed producers in Brazil and Africa to increase production capabilities. The company expects to establish long-term production infrastructure through these agreements.

Proceeds from the Lavie Bio/MicroBoost AI sale injected significant capital, strengthening the balance sheet. The sale of the majority of Lavie Bio's activity to ICL, completed in July 2025, along with the sale of the MicroBoost AI for AG platform, generated income, net, of approximately $7.9 million in the third quarter of 2025. For the nine months ending September 30, 2025, the company recognized a gain on sale of approximately $6.4 million. As of the end of the third quarter of 2025, Evogene Ltd.'s cash and short-term bank deposits balance stood at approximately $16.0 million. This cash position reflects the proceeds from these divestitures.

Remaining Lavie Bio assets and collaboration agreements are structured to potentially generate future returns for Evogene Ltd. as a major shareholder. It is important to note that Lavie Bio's existing strategic partnerships and commercial agreements were not part of the transaction with ICL and will remain under Lavie Bio's ownership. These agreements may yield future revenues for the benefit of Lavie Bio's shareholders.

Here's a quick look at the key financial markers related to these cash-generating activities:

The structure supporting Casterra's market position includes specific operational achievements:

• Seed varieties developed using the GeneRator AI tech-engine.
• Germination rate of approximately 90%.
• Agreements signed with producers in Brazil and Africa.
• Agreements expected to establish long-term production infrastructure.

The structure of the Lavie Bio divestiture confirms the retention of potential upside:

• Existing strategic partnerships remain with Lavie Bio.
• Commercial agreements remain with Lavie Bio.
• Future revenues may benefit Lavie Bio's shareholders.

Finance: review the cash burn rate excluding the one-time asset sale proceeds for Q4 2025 by next Tuesday.

Evogene Ltd. (EVGN) - BCG Matrix: Dogs

You're looking at the remnants of Evogene Ltd.'s portfolio-the units that didn't gain traction or didn't fit the new, focused strategy. These are the Dogs of the BCG Matrix: low market share in low-growth areas, or in this case, assets that have been actively pruned to conserve capital. Honestly, expensive turn-around plans rarely work here, so Evogene's management chose a cleaner exit.

The strategy has clearly been to divest or discontinue these non-core activities to sharpen the focus on the ChemPass AI tech-engine for drug discovery. This aggressive culling is what allowed the nine-month 2025 operating loss to shrink significantly compared to the prior year.

Here's a quick look at the major components that have been moved out of the core operating structure, representing the final disposition of these Dog assets:

The actions taken against these units were decisive, aiming to stop the cash bleed and focus resources. You can see the direct impact of these decisions in the reduced operating losses reported through the third quarter of 2025.

• Canonic Ltd. operations were discontinued in the first half of 2024, which included an impairment of fixed assets totaling approximately $0.5 million recorded in the first quarter of 2024.
• The MicroBoost AI for Ag tech-engine, which was sold to ICL for approximately $3.5 million in July 2025, is no longer considered a core asset.
• Lavie Bio's core operations were sold to ICL for $15.25 million, and these activities are now classified as discontinued operations in the financial reporting.
• Legacy R&D programs outside the new ChemPass AI focus were culled, helping to reduce the operating loss for the nine months of 2025 to approximately $8.8 million from approximately $15.3 million for the nine months of 2024.

Finance: draft 13-week cash view by Friday, incorporating the full impact of the July 2025 asset sales.

Evogene Ltd. (EVGN) - BCG Matrix: Question Marks

These business units operate in markets showing strong upward momentum but currently hold a low relative market share for Evogene Ltd. (EVGN). They consume capital to progress their development but have not yet translated that investment into substantial, recurring top-line results as of late 2025.

Biomica Ltd., focused on microbiome therapeutics like BMC128, is in a high-growth sector, yet its operations have been scaled down, with the company actively exploring potential partners to take the lead on its current development programs. No new initiatives are planned for this subsidiary. This contrasts with the significant prior investment, as Biomica previously secured a $20 million financing round to advance BMC128 into its Phase II clinical trial and scale GMP production for BMC333.

The overall financial performance for Evogene Ltd. reflects this investment phase. Total revenue generation for the first nine months of 2025 was approximately $3.5 million, a figure that fell short of analyst expectations for the period, indicating low current returns relative to the high growth potential of the underlying science. For the third quarter of 2025 specifically, revenue was reported at approximately $0.312 million.

The ChemPass AI platform, central to Evogene Ltd.'s future, is driving new collaborations in the pharmaceutical space, a market projected to reach nearly $190 billion by 2034 due to AI-driven discovery. However, these new pharma collaborations have not yet translated into significant, recurring revenue streams to firmly establish market share for Evogene Ltd.'s AI engine in this segment.

The cash burn associated with these high-potential, low-share units is notable. For the third quarter of 2025, the consolidated cash usage, excluding proceeds from asset sales, was approximately $3.5 million. As of June 30, 2025, the consolidated cash, cash equivalents, and short-term bank deposits stood at approximately $11.7 million.

Here's a quick look at the financial context surrounding these Question Marks as of the nine-month period ending September 30, 2025:

The strategic status of these growth-oriented assets can be summarized as follows:

• Biomica BMC128: Advancing toward completion of Phase I trial.
• Biomica Operations: Scaled down; exploring potential partners.
• ChemPass AI Pharma: High-growth market potential.
• Revenue Generation: Not yet significant or recurring from new AI collaborations.