Q4 2021 Evogene Ltd Earnings Call
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[music].
Ladies and gentlemen, thank you for standing by welcome to average in the fourth quarter 'twenty 'twenty. One results conference call. All participants are at present in listen only mode. Following management's formal presentation.
Instructions will be given her the question and answer session for operator assistance. During the conference. Please press Star Zero as a reminder, this conference is being recorded March 10th 2022, before we begin I would like to caution that certain statements made during this earnings conference call I haven't just management will constitute forward looking statements that really.
Future events risks and uncertainties regarding business strategy operations and future performance and results of averaging I encourage you to review <unk> filings with the U S Securities and Exchange Commission and read the note regarding forward looking statements in today's earnings release, which states that statements made in the earnings release.
And in a similar way on this earnings conference call that are not historical facts may be deemed forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. For example, averaging is using forward looking statements in this call when he discusses its expected path to value creation.
Including potential Fundraisings that have the subsidiary level its and its subsidiaries expected trials and their expected results studies product advancements commercialization launches pipeline milestones potential collaborations and other plans for 2021 and 2022.
Expected burn rate.
<unk> advantages of its technology and its anticipated entry into new fields of activity. All forward looking statements made herein speak only as of the date of the announcement of the results. Many of the factors that impact whether forward looking statements will come true are beyond the control of Allergan and may cause actual results to differ materially.
From anticipated results.
<unk> is under no obligation to update publicly or alter our forward looking statements, whether as a result of new information future events or otherwise.
Sept as otherwise required by law, we expressly disclaim any obligation to do so more detailed information about the risk factors potentially adversely impacting our performance can be found in our reports filed with the U S Securities and Exchange Commission that said I would now like to turn the call over to other hobbies emergency Oh.
Please go ahead.
Thank you and good day everybody.
Appreciate you joining us today for our fourth quarter 2021 also in school.
Joining me today is the weak spot.
Our CFO .
I wouldn't begin to call to be sharing the company's plans for the coming years.
What we aim to achieve and how our suite take engines are the driving force behind Oh Jesus.
Serving as the main competitive advantage of our subsidiaries.
I will then go on to present their achievements in each of our subsidiaries and how evil Janice <unk>.
And Genesis have supported those achievements.
We'll then turn the call over to do reach who will summarize the financial results for the first quarter and whole year 2021 .
We will then open the call for your question.
As you know Imogen aims to revolutionize the development of novel products for life Science based industries.
He liked ingot cutting edge competition.
Apologies.
Lifeboat important pillar this revolution in general last.
Life Science for the development is characterized by a strong development post <unk>.
Requiring very long development period, and the most frustrating part is the local video actually reaching a successful commercial product.
The reasons for this the reality is the challenge in finding the we need Kathy that we.
Which are the core of lifestyle product.
Mike books, more muscles or genetic element.
Alcohol suggest another mostly about the prospects there.
What's been accomplished many of which you got to.
Felipe successful product.
It is the ultimate case, finding needles in haystacks.
We and epogen see a unique opportunity inherent misty and advanced computational technology, including proprietary database and sophisticated I agree with Jim.
I understand you go parallel G. The tap the potential to address multiple development challenges.
Toward the development of successful lifestyle product.
These increases the probability of success, while reducing time and cost.
So to achieve our mission, we established our unique computationally predicted biology, the CPB platform.
Which is the basis for suite check engine.
Each focus on accelerating and directing the discovery and development of products based on one of the following components.
Globally via mitral boost a I.
It's more about of course, yeah campus AI and genetic elements.
It generates or AI.
Our pick engine provides rationally designed computational and experimental and.
And it's got to be a development solution for lifestyle based product.
What is really unique and diesel engines are.
Are the proprietary element, our databases and even more so the multi disciplinary interconnection between it did that the beaches.
This makes each stick engine.
And invaluable tool.
In the hands of researchers.
Who can now utilize and reach local insight through the tech engine into active work environment.
In our vision, we see each of these <unk> engine.
Okay.
Tim.
But our the development of products in a wide range of life Science, you can just visa.
Based on the either my clubs.
More money or genetic element.
Each ecosystem, we provide an interactive work environment in which the more project.
<unk> embarked on.
And reached our database and analytics capabilities become.
Huntington Beach team to better predictions and improve the probability of success for each product on its own.
Our chief product Officer, Brooks Oneil, all the bad weather.
Whether we as you've seen has designed this engender.
Access to multiple users and Boston area.
To the enhanced discovery and development experience epogen can provide.
For example, this vision has already began to materialize with Michael just AI, which serves to our subsidiary U S. Driving force in two very distinct lifestyle areas.
How did your culture, where all of it back we'll keep developing unparalleled yakult.
And pharma whereby you owe me car is developing microbiome therapeutics.
The company's visit model to capture the value of our three search engine.
Lives on supporting product development efforts of our dedicated subsidiary.
Which we expect will generate values through our equity stake.
Sure.
Through co development is supposed to be signed broad that switch strategic partnerships.
Which are expected to include R&D and success based payments from our partners.
In the coming years in order to support the future growth of the company.
We expect to see epigenetic activities focused on the following three pillars.
Sure.
Got you and intend to.
So and prudently invest in the capacity of each suite that engine.
We intend to address more discovery and development challenges and to improve their existing solution.
And that's a bit.
We'll continue our journey to support our partners in their efforts to develop innovative products with the best computational abilities support.
Hey, Ken.
We expect advancement in our subsidiaries the development pipeline and the establishment of each company.
A leading company unique speed.
Of course, we will continue to update on the progress to fix it.
And third neupogen intend to be more active in expanding E check engine offering to additional areas to support the development of new products right.
I will now move on to discuss our subsidiaries and how evil technological engine supported.
You've been.
Over the past year, and what we can expect looking forward.
I was talking to somebody will be tough our subsidiary focused on the development of a drug based on the human microbiome.
Well you owe me got utilized Epogen my people say I take engine to support each activity.
Over the past year, we have seen biomarker rich what was the chiefs Brett Linzey calories out.
Immuno therapy program.
Which may indicate.
First in class drug candidates.
In a series of preclinical studies.
B M C 128.
Given in combination with immune checkpoint inhibitors.
Immunotherapy.
Significantly improved anti tumor activity.
B M C 128.
He is a combination of fault microbes.
Were identified and rationally designed according to Derrick.
Functionality using prism powered by micro boost a I.
Oh My God recently received clearance from the Israeli Ministry of Health.
Proceed with first in human Phase one study.
Is that to be hotel at the Ramadan healthcare campus, the largest health care center in the northern part of Israel.
The population of approximately 2 million people.
But let me talk is currently advancing toward.
Initiation of the study.
This phase one study will evaluate the safety and Tolerability.
128.
In combination with the B M S.
Bo.
In patients with non small cell lung cancer.
Noma or renal cancer.
You'll see 128 will be offered to oncology patients.
Who has been found to be nonresponsive to current treatments.
So you can see 128 shows any clinical <unk> that would be a wonderful additional outcome.
In parallel.
Because I'd be D program is also proceeding nicely.
2021 received positive preclinical results.
It gave the company the confidence to proceed in 2022 to just scale up.
Development process P. M. C 333, which was also rationally designed according to Michael functionality.
Like prism powered by Mitel boost AI.
Moving on to the second company in the field of human has Felipe.
Our subsidiary focused on the development of medical cannabis product.
Hello, Nick utilized people agenda generate go AI engine to achieve this mission.
I'm, particularly happy with the rapid advancement in this company.
Focusing on the genetics of cannot be.
He was one of the best thing we could have done.
They cannot be explained was such an overlooked blend it's even relatively simple genetic steps.
A huge impact on the blades.
Of course, you have to know what you are doing.
Have you been to make it but that didn't seem to change it and that is the purpose of the generator a I think the logical engine.
You know, it's all about 2021 canonical moved ahead with full commercialization in Israel, We do first of all that.
From the best of Yosemite.
Over these past few months, we have seen our brand awareness increases and we hope that the quality of colonic product.
Marketing efforts will support market penetration over the coming years.
As of today.
We expect to see in 2022.
Israel will be modest.
And represent the beginning of market penetration, while we see Europe as the company the main target market.
During 2022.
Fixed the walk on the go to market for the European expansion.
In parallel.
Its intent to bring to market in Israel.
Additional products from this family.
It is and.
Canonic employed generator, a I T designs, Kevin Jeanette.
Genetic markers, including four inch T. A C level.
And the company has recently shown statistically significant.
<unk> of more than 20% in D C concentration and its target cannot be population.
Technology is also developing products for me recite family I need to bring to market for that.
Got it.
Medical indications.
Over the past three years colonial conducted preclinical trials, which have identified cannot be barraged with.
We spent relief and inventory.
Inventory corporate team.
And in terms of the together clinical information over the course of 2022.
Support the commercial launch of such products in 2023.
They use them for epigenetic engine.
Particularly valuable in this program through their ability to MIT and collapse right.
The functionality of active ingredient within the plant and to connected to our clinical data.
I would now move to Atlanta, our French subsidiary in the Us industry segment.
Our mission is the target base.
<unk> of noble and sustainable crop protection product.
Based on small molecule.
Atlanta was utilized Epogen campus I think engine to achieve this mission.
Following the appointment of excellent news D O Doctor Brian Amber.
The company will continue to advance its new mode of action Herbicide development program.
In General I think it's part of this collaboration we've put together.
And expand activity in the us.
Other crop protection segment.
Atlanta will also focused its efforts on streamlining the predictive biology and chemistry tool.
According to use their requirement and Burger king them S bullet solution platform.
In 2021 the company together.
Information regarding each leading new mode of action H P. G. H one the target protein for the development of novel herbicide.
And reach proof of concept for our seed trait.
Presenting crop resistance to eight P H one.
Accuse me call compounds that could serve as the basis for a novel herbicide.
In parallel the collaboration with Teva progress According to plan.
It went to 22.
It is intended to further expand it the data surrounding H B T H, one which should position us well for engaging in discussion.
You spoke then shall partner.
Moving to our second subsidiary in the AG industry, aiming to improve agriculture productivity and sustainability.
Microbiome best I'd biological product.
Let me bio utilized epigenesis micro boost AI engine to achieve this mission.
During late 'twenty or 'twenty one.
Levine bio lunch meats local end result.
Towards the 2022 stream Susan.
The product you Michele market penetration.
Then for the upcoming 2022 spring wheat, Susan and we'd been limited.
It gets region in North Dakota.
Actually the sales from this spring season are expected to be recorded during 2022.
Depending on seasonality and weather conditions.
Our expected to be modest according to our U S penetration plan.
During 2022, the company expects to increase its production capacity.
Total many pictures towards a significant increase in market penetration in the 'twenty to 'twenty three springs isn't.
In parallel.
Let me dive fungicide food truck program.
It's continuing to expand and.
And during 2020 to.
The company expects to submit a regulatory dispute with the federal U S E P eight and California E P. A.
You didn't candidate lapping three worldwide.
Most of it does and labs worldwide were discovered and developed through the use of AI.
Into account, both microbe functionality in plant genetics.
No.
You can understand we are very pleased with the advancements we see across the broad reach.
Which we view as a powerful demonstration to the quality and efficacy of our thick engine.
Looking at sweat be 'twenty, two we expect our niche brand rates to be similar to that of 2021 .
And in the range of 26 $28 million.
Let's see bio and.
In $18 million to $20 million, excluding IP value.
As of December 31, 2021 .
Our consolidated cash cash related account bank deposits and.
In a marketable security.
The proximity $54 million, which.
Would you believe send a clear message of our financial stability.
Steel in order to accelerate our subsidiary rose and to strengthen their position as independent companies.
We are in different levels of discussion with potential strategic and financial investors.
Dork potential fundraisings.
And when we can update further we will do so.
With that I would now like to turn the call over to the REIT.
Please go ahead.
Thank you so I will begin by reviewing our cash balance.
<unk> continues to maintain a sound financial position so its activities with approximately $54 million.
Sunny days of cash, especially related accounts bank deposits and marketable securities as of December 31st 2021.
Approximately $7 million to $8 million.
People just consolidated cash is a very good place subsidiary, let me back up.
During 2021, the consolidated cash usage was approximately $25 8 million lower than the estimate that gets you the swings.
28.
And by the company at the beginning of 'twenty or 'twenty one.
The consolidated cash usage, excluding the B bio.
26 million in 2021.
This sounds in 'twenty or 'twenty one.
Giving effect to approximately $29 6 million net raised two I'll ask about the equity offering program.
1.8 million postpaid so nothing discernible upon an exercise of option.
During the fourth quarter, we did not raise additional funds so its ATM program.
During the fourth quarter of 2021, the consolidated cash usage was approximately $8 4 million or folks in at least 7.0.
It's excluding that feedback.
This is in comparison to the fourth quarter 2020.
During which the consolidated characterize it was 6.1 linear or five planes.
Excluding luxury buyer.
The bandwidth 2021 and then the fourth quarter was higher than the same periods in 2020 for the following reason.
During the second and third quarter 'twenty 'twenty, apparently relative you know you're discussing measures the company initiated to mitigate the impacts of the COVID-19 pandemic.
Yeah.
Second during the second half of fiscal 'twenty, one it was in subsidiary significantly expanded product development activities.
Yeah.
But he only comes off line preparation, including GMT My talk production. So the initiation of first in human proof of concept study in the immuno oncology program and there are some healthcare samples.
Lastly, bio's activities supporting the promotional allowance plus the 22 notes.
Nokia long product branded as <unk>.
Cannot explore that somebody say radiation in Israel during the fourth quarter of 'twenty or 'twenty one.
And expenses related to accelerating and extending it was in technological engine.
As also mentioned, we estimate that our net debt for the full year of 2022 will it be within the range of 26 to 28 million.
These guidelines include pet usage of our subsidiary <unk>, which is expected to be approximately 18 million.
Company does not have back then.
Let's now turn to the statement of operations.
Revenues for the fourth quarter of 2021 with a 311000.
For example, 350.
1000 in the same period for the previous year.
Revenues for the full year of 2021, well they all point 19 million in comparison to 1.0.
'twenty 'twenty.
R&D expenses for the fourth quarter of 2021, which are reported net of.
Refundable crackers.
<unk> 6.0 million compared to four 8 million in the fourth quarter 2020.
R&D expenses for the full year 2021 'twenty.
21.1 comparison to 17 3 million in 2020.
Increase in R&D expenses was mainly I think with its expansion and product development activities of the company and its subsidiaries as mentioned earlier.
This is development expenses were approximately 720000 for the fourth quarter of a century 21.
In comparison to 670000.
Fourth call centers.
Business development expenses remained stable in 2021 in comparison to 2020 and we're focused.
Fortunately coupons to them.
Yeah.
Turning to the expenses for the fourth photos 'twenty, 'twenty, one where coupons media and comparison to one 7 million.
Fourth quarter was 2020.
General and administrative expenses for the full year 2021 were seven 3 million compared to 5.3 million.
In 2020.
The increase is attributed mainly to the increase of the cost of directors' and officers' insurance and then increasing salary based expenses as they will now describe and then eclipsing other professional services.
Overall operating expenses increased a money loser.
Due to an increase in salary based expenses in comparison to 2020.
Following relatively low salary based expenses in 2020 due to measure taken by the company to mitigate the impact of the COVID-19 pandemic.
And any changes in salaries in 2020 , one due to an increase in market demand for highly skilled work.
The loss for the fourth quarter of 2021 was $8 1 million in comparison to a loss of $8 8 million during the fourth quarter of 'twenty 'twenty.
They look for 2021 was 34 million in comparison to a loss of $26 2 million due in 'twenty 'twenty.
The increase is mainly to the increase in operating expenses, which was partially offset by net financing income.
One to one comparison to a net financing expenses for 2021 .
With that said, we would now like to open up the call for any questions you might have.
Okay.
Thank you ladies and gentlemen at this time, we'll begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two.
Using speaker equipment kind of lift the handset before pressing the numbers there are questions or they call them. They order. They are received please stand by while we poll for your questions.
The first question is from Brian Wright of Roth Capital Partners. Please go ahead.
Thanks, Good morning, and congrats on the progress hadn't wanted to start out with can you give us a little granularity maybe I just missed it on the revenue drivers in the quarter between kind of just.
You know our historical revenues versus maybe some you know some cannabis related rebate revenues.
And this is after.
I couldn't disclose the exact number but they want to compare that to.
<unk> portion from the revenue and just in the last quarter.
Based on the revenue.
Are you coming from colonial activity was introduced the product.
During the day.
In October .
And even though that was it.
Really.
Hum.
And the multiples there are very positive and the.
Okay.
Revenue is debate on this a bit.
M D C.
D D.
Great I was hoping you check that thanks, thanks, so much.
And then could you tell US you know give us maybe a little more granularity on the timing of the enrollment and maybe the observation period for the BMT human trials.
So we are now in the final stage of production the microbes, which are the basis for its 128 I hope that the production, which is you took place in European friends with and in the next few days and we will ship the material to easily.
So assuming this will end.
And according to plan and expect to initiate the <unk>.
The clinical trial in the realm of possible at the beginning of next quarter.
Great Great and then last one if I can squeeze one last one in there.
Well just wanted to kind of think about just you know what are some of the enhanced qualities or improvements for the second generation of the meta yield products to.
So the second thing is.
Product is mainly focusing on a two apartment does.
First of all the way he says that the main.
This too is increasing.
Sufficient with H C.
And because this is what the market is really looking at today are the maximum you can get to it.
According to the regulation here is up to 24% and our product was around 21.
So we are targeting to include the THC concentration.
And in addition, we are pushing a lot of focus on the <unk>.
And you know what it's called the consumer trade Oh, you know like Oh did that then the powers of the.
Flowers is the the smell the structure the they're not broken the number of cycles, but the main focus has been crazy that D C consultation.
Great. Thank you so much.
The next question is from Creston cough cough Cantor Fitzgerald. Please go ahead.
Hello. This is Rick on for Christian Thank you for taking our questions as we're getting into the spring wheat season in the U S and consumers has been noticing increased costs due to inflation on different goods, including food Oh, what could you say about how producers including in the initial target.
Chen of North Dakota are looking at new technologies, such as result in which you are looking at starting commercialization and are you at all thinking about how macroeconomic factors could affect the launch.
So remember that the first product that we are going to launch is the increasing yield.
The this is something that the farmers are always always looking for and they're eager to include viewed usually in Queensland.
The price of the of the day and the yield of their crop.
Despite the market price is going up.
We are now in the ultimate.
The situation.
Because with all the result is targeting to increase the.
The polls are weak.
And a coffee the price.
For wheat and rich.
Rich.
We called the business.
And that's the reason why.
And are there any type of if rates are going up.
So the interest of the farmer's been crazy really hear you.
Yeah.
Is them.
Going up according to the price of the week.
And when you are investing a lot in your crop.
And you know what in crop protection and in coastal states and everything but if you can.
Liquidity.
Well it is lumpy that you'll always be interesting, but bottom line.
That the product can increase yield or we are doing.
During this year and probably also next year, it's a very positive and this is why.
And one of the things that we all know and and evaluating is the production capacity for next year, because if we see the same trend.
And at which price.
Get to what's going on in the world. So.
You should try to increase our production capacity for the year 'twenty three.
I believe it could be it could lead to a nice demand for products that can improve performing or such yield.
As the weeks.
Yeah.
Alright, Thank you and maybe just one more question you mentioned tagged plaintiffs looking at potential additional partnerships. In addition to the ongoing core cava partnership. So could you talk a little bit in general and perhaps give us a little bit of color on perhaps the different factors that AG plaintiffs could be Wang and looking for potential <unk>.
Our chef.
Hum.
I would like to take it.
Vintage on discretionary spend.
They once again.
But it will have a look at the O'brien the news the of the company.
That's all the short time of working with him I'm quite excited and looking forward to see how it is going to fix the company connected you already start to think about topics and activity.
In addition to what we're doing in the area of herbicide.
So I'm really looking forward to see how the progress of the company although he's the.
Guidance.
Just back to your question So Davies presentation.
And once we are sure.
Our pipeline.
In the area of purposes and we.
We released a few target.
In our pilot field targets, which means if you're quoting that Oh, we live them at the target for developing a prototype.
And some of them are to date, Bob from our relationship with them.
Deborah.
We can't disclose much work going on and despite that except that we are advancing according to plan and we need of course towards the end of our.
Our partners expectation I'm not too sure do stuff with information in addition to the targets are.
Is it possible that relationship with co pay but we have additional projects, which we are managing it all works out.
Could you tell us like like among them is the <unk>.
If the H one.
We get a lot of information relative.
And gather information and this is something that we learned something that they again they already started talking with the companies that are that.
They're not just on this group of molecules.
Sure.
The Dell binding to the target that they have always looking to the textbooks information around the target and they're looking for different type of chemistry, it's like bad.
Biting into the school team. So this is the type of information that nobody I'd, rather wait and get ring around it.
All right.
Protein and this is the population with no sharing is different there are more bleeding and chemical company.
And at this.
It's almost like what are we generating additional information and desktop on the specifics of it.
If it became a Swedish validated target.
And I believe with this.
It could go either.
Our collaboration with lot of these companies are assuming that the information that we generate.
Will create enough interest to enter into these type of relationships are and.
And I think that puts it very interesting.
That'd be great.
Something that we emphasize again and again is that we are focusing on new mode of action.
That's something trivial to develop and to focus on in the area of herbicide. So this is why we believe that the Oh.
Again, you know biology chemistry.
It will have that and that's what we're looking for it could lead to a collaboration around why don't you say Oh okay.
Our leading protein and the chemistry that we already had to stop it and show it 19 vacation indifferent to SA ER, which the ability to act like the wrong it doesn't inhibit that.
Okay. Thank you very much for answering my questions.
The next question is from Nathan Weinstein of Aegis capital. Please go ahead.
Hi, Ofer and Evo gene team, thanks for taking my questions.
So maybe I can just start out on a biomarker checkpoint inhibitors have shown efficacy in a broad range of solid tumor types I'm just curious if the inclusion criteria for the upcoming study of M. C 128 with specified certain types of cancer or all comers.
But your question is what type of concept that we are going to validate the BMT and 128.
Yes, exactly yes, so I think that's it.
I'm a trump in the my script I mentioned that it's a leg.
Ah kidney and in melanoma.
Okay. Thanks, so much I missed that in the prepared remarks, but thanks for reminding me and then the second question just shifting gears to canonic looking beyond revenue at the early stage of this launch maybe what other metrics should we be considering to track the progress of course.
Alex in Israel for example, could you speak to the consumer awareness trend so far in 'twenty to 'twenty two.
Okay. So I think that the.
The interest in 'twenty to 'twenty two.
With respect to sell.
Mainly come from the Israeli market and the Israeli market is really driving.
Oh, Gee, the concentration and the quality and do it and look and the feel and smell of the product itself.
And this is why we are looking.
Not to beat.
The construction of our second the and rig and picking the product and in the family, but my expectation is that the main growth for ammonia will come from Europe .
I think that the end of the second family of.
Productivity to trip up at Dawn, which is it died.
Lounge at 'twenty two 'twenty three.
This is that that brought us it could be a more rather than the European market.
Well, if you're talking about a specific day that they.
Cannot be for medical cannabis product with the clear indication medical indication on the effect of they cannot work on it.
Because the pain or disease, and I think that there is there are we would start to see the revenue going up very very well.
Significantly.
Yes, we should.
We probably should be.
The reason that the revenue from these activities is L. A N but oh.
But I think when they see the economic future of really making thing.
Wait it's mainly when the precise family and it will be if anybody they lock it and when we will introduce those products and they'll just today's market, but also to Europe .
It seems like it could change the game days really market will mature and the diminishing won't be just THC and CBD.
Two additional apartment theirs, and then things that we can be.
We can differentiate especially if that was from.
From the other companies with our product.
<unk>, so to shorten like I'm sorry.
2022 excuse me, we focus on the Israeli market for that.
The second wave of product with higher THC is expected to catch up there.
And in market shares in Israel, but the.
The main growth I believe that between pharma from Europe and from the put back the money.
Yeah.
Okay, great well. Thank you all for and looking forward to an eventful year ahead for imaging.
Thank you very much.
The next question is from Steven Goldman. Please go ahead.
Oh, good morning off or how are you.
Okay. Thank you.
Okay. So a very briefly I have some questions generally about.
Financial plans.
[noise] about CRISPR.
Program, and then I have a couple of questions about each of your four main subsidiaries.
So with respect.
<unk> two <unk>.
Financial aspect.
We've heard that you have $54 million approximately as of December 31, and if there are plans to raise money.
Monies in the past you've discussed.
Walking.
Shareholder value by doing one or more ipos of your subsidiaries I E.
The biotech market as a whole has.
Boston and the positive mood lately. So you still have plans to do that.
I think that at the current stage. Our main focus is on it brought a private problems.
We as a strategic partner or we partner with private investors.
And Ah.
A P C Richard capital one financial institution.
And I.
I believe the physical really should be the next step in the corn market condition.
And the only Daniel who has bought a window in the market.
They'll often do we stabilize.
Then I think that we should start to move into the direction. Okay.
From a public offering.
Of course it at this stage, we prefer to look for.
In switching.
Switching to just those strategic investors that they do.
See the value of the technology and data and they must be also partners of our subsidiaries.
Just the institution.
Hey, Bhakti you know if there would be the weapon.
<unk> proposed that and of course, we really.
It is as well.
I think that the.
From my perspective, especially you know these days when when they do all of these is the Doctor show and more understanding to the importance of the issue of it.
It took like stability thing that thing and the potential for a company like that would be valuable.
A M to M advent and to increase the awareness of their activity is easing.
And the positive trend.
And I'm really looking forward to see how it will impact Oh, the progress of the company and.
Would it be about at the time, a company I think that they're really not be that Oh my God.
And do you know when you're talking about there.
It's always when you have it.
And achievement in Boston interesting results coming from the clinical trial and it.
Could be also a very interesting point to evaluate the opportunity to take the company public.
But to be linked to reach to disappoint 'twenty again.
Again looking to them they get to take this company to the public market, we would like and in between there to raise the money in the private dwellings.
Like the LBO.
Right now when you say that are you talking about raising money at the subsidiary level.
Yes.
Okay, alright, because that would be presumably less dilutive.
Is it your view that certainly my view that the value of each of the subsidiaries could actually be higher than book value averaging itself.
Any comments on that.
I don't know.
I'm not sure that I can comment or something like that.
You can imagine that the company feel Ah I I believe that.
Each one of our subsidiary <unk>, Inc.
In our presentation.
That would be published today, which I highly recommend that everybody in the skull to eh, we view that'd be the one slide that.
We could wear it.
We do some comparison between <unk> and <unk>.
Our living and of course, that's good it means the company.
And in the in the same segment and what is the current valuation give them public or.
What's the valuation with the last time they raised money.
And I think they said could get sent a message on what could be the valuation of our subsidiary of course, we need to to make sure that you compare between and between all of the subsidiary to the company that endeavor and defense states like like where our subsidiary are.
It can give you.
Indication, but what could be or maybe what should be the value of our subsidiaries. If you raise the money no doubt that that theyre going to a market cap of about something Thats helped.
We need to capture the real value but.
Can you give any indication of what it could be yes. It will.
It would be completely independent of what we are focusing a lot on.
Okay, well thank you.
Briefly on epigenome role with the CRISPR I know that you have.
Press release, including a press release in November .
Your involvements.
And the CRISPR IL consortium.
Specifically I understand that a doctor Emmanuel Who's your G. P. A new direction that Epigene is actually chairman.
Of that consortium and there has been discussion.
Bayou in the past using CRISPR and the development of some new products. It can you shed any light on that.
What is happening with that.
Uh huh.
First in everything that you described them out is correct.
Epogen is involved and actually leading.
Hey, there.
A lot of Bill I'll, just a quick one.
Salt field of companies and academic institution to renew them, which are focusing on developing.
Innovative and breakthrough technology in there you'll fit genome editing.
Something called <unk>.
Crispin I L and it's funded by the Israeli government.
And I think all day there.
A leading institution in Israel all apart from this the consortium and we are developing in this consortium.
We are using AI machine, what's it called guided RNA, which this is a very very important piece from a a to ensure the accuracy and the efficiency.
The genome editing.
And in a human or in our plants or animals.
So it's a very important work that we're doing and we didn't have it.
Right.
Exclusive right because we have the right to all the technology that we are.
When they were looking into and its thing then almost everything.
He is doing.
Hey, it's really advancing nicely.
And.
And we just could not.
The other thing that Ted and demand.
The last fall they were flat.
Previous year, we also announced that Israeli government.
Yeah.
Approved the extension of this consortium anybody another year.
So this is the work we're doing there and all of the activity its path from generate though our tech engine.
What we hope to commercialize the value okay.
Everything this is something that we are now.
And and evaluating.
I'm sure that we can use it.
Edward.
<unk> is developing unique.
Productivity, how do you catch up in the food they eat.
Thank you.
You can take it also to other industries that they need to.
A different type of thing and.
The country Smith.
And one of the questions three I'll tell us up.
That's too.
Traditional service provider or really to try to use that technology to develop products.
But this is something that probably we will and when we finalize saying nothing.
It would be able to share more information, but the potential is very very big.
Oh, Geez Theyre unique and they show a very nice performance.
And we are.
Okay, well what can be the next at least something that.
It wasn't clear to me.
Because there was so many avenue.
And we need to also to make sure that we have enough financial resources to make it happen. So at least where we are today it would be it's regardless.
Okay. Thank you.
Yeah.
I'll move on to play Amazon and I think a little bit of Hudson touched on this but.
We haven't yet seen the Ah trial designs four P. M. So you want to wait although you have disclosed that you've entered into a supply agreement with Bristol Myers for their PD.
PD, one checkpoint inhibitor opdivo, but when do you expect to release the details of your trial design and secondly, when do you expect to dose your first patient.
So this is the type of questions probably.
Oh, My God are the right person to ask.
I'm not sure that we are going to.
Disclose the bottom of this thing Unfortunately, I don't think we need to do so.
In high level, what we are planning to do is.
It's too early.
Route between 12 to 15, the patient that they didn't respond positively and.
To change the treatment by a checkpoint inhibitor.
They will enter the trial winds up to go to a second factory for.
Richmond, because he's done which will include a the b M. C 128, together, we've built depot.
And the thing that they would be also discloses that.
They would receive the B and C. One of them 28, or 10 days or something like this before that the joint treatment and then they would receive the joint treatment.
And.
Honestly I haven't personally live I don't know.
I don't have all day.
That information.
Hum.
So how we're going to do the audits communication.
Vacation.
Maybe you can describe to you know directly with.
If you would like to do so.
And I think if you will.
No question or there wasn't another thought.
But yes, when do you expect the the dosing of the first patient.
Ah I I believe that it can be in the first quarter.
No.
Got it.
Beginning of the second quarter, yet okay alright.
That's great.
And then.
Recently, a I guess a few months ago, you announced that Doctor, Iran. Segal has joined your scientific Advisory Committee I had coincidently you've been following our Doctor Segal on Twitter are because of his work he's become a science starring in Israel, but he's got a re.
Specialty in microbiome therapeutics.
So my question is will he be or his lobby having are playing an active role in biomarker.
So first yes, you're right.
Hey, Paul pistol.
Got it.
<unk>, which is the world leader in the field of the.
Uh huh.
A competition on the and genomics and really mainly focusing on.
Ah corporate World He joined our scientific Advisory Board and it could be just the very important too.
Evidence of the quality of what we're doing in Appleton and.
And yes, he is really interesting and what they're doing and I know that there is the ongoing discussion between.
And.
And he's a lab.
There are areas, where we can work together I think that what is the unique end to end.
Hey, Ron.
Focusing on mainly on the Vitale discovery, while in every channel we are well first of all in the discovery phase, but we are also.
Focusing a lot of our efforts on the optimization and the development phase.
Could we see a very nice synergy between his lab and every tax dividend.
And you know I I, even green light for both sides.
To discuss and hopefully to find ways that we can work together it would be amazing to walk with his lab.
You know we are already working with the other you'll not eh.
<unk> lab it together.
I choose the Nobel Prize winner so at two o'clock Ortho is always there.
And it could be another another.
Very nice accomplishment and a complement to.
Our quality and the how serious the company in the way of opening.
The trade war.
Well thank you.
That's great.
Quite an impressive gentleman.
Let me move onto a lobby feel.
So the currently I understand you're looking for a new CEO and I'm wondering how how how 'bout searches going in and when you expect to announced the appointment of a new CEO .
So.
One of the question this way other than hesitated.
Should we look for it.
We knew that already broad so we decided to look in both places.
We are now working with us head on terrorists.
We are.
It's all going to come back then.
Yeah.
Interviews.
I believe that when we find the right one.
We really we would announce it currently I am acting as the.
He has acted as chairman and we haven't done a the team the musical Peter but you're also a temporary C O and I say that because we are really managing the company. According to plan and.
Two targets, but no doubt we need to bring the right deal for the company and I believe it or not.
The computer they should take in the next day.
The upcoming game. The next few months, so I really want to bring the right person that can take the company into the next phase of any one of them and there's a lot of that is that is known to be ortho debated the company hopefully to the public market. So we're looking for somebody that day.
The the right experience.
And these type of thing.
Okay.
Yeah.
Okay, well, that's what we look forward to.
During the results of a successful search so you had mentioned I guess in your in your with your laughs speaker.
The the.
Price of wheat, and I understand because of the.
Unfortunate Russian invasion of the Ukraine, and Ukrainian being such a major wheat export or is that the price of the tests actually skyrocketed. My understanding is that it's pretty much doubled in price since last year.
Uh huh.
It is this.
Affecting the way you're now marketing our result, because I know last fall.
You were talking about the result of increasing in a kind of a net increase in net revenues per acre by about $20 per acre is.
Is that figure now doubled to $40.
And how is how is this affecting your on the ground in your marketing campaign.
Oh this for this year, because we've talked in the marketing process.
In 2021 .
So to to the events that took place in the last month.
It won't have an effect.
On the pricing and the quantities you get there.
We produce and point of sale.
This isn't usually something that yeah, you made the preparation.
At least at least six months they had before.
So I think that to a few.
You don't just see an effect it would be more on next season.
And.
We shouldn't underestimate the challenge because the production capacity each heaps of significant issue.
Because we have to think about their life by crop and we need to find the right.
And that's causing this gannett and produce the quantity there.
And I think that this is one of the main task of bio <unk>.
Our operational team is to make sure that for the year 2023, assuming the which price would it be alright.
And we should increase the capacity.
The production capacity sales force and then probably it could also have an effect on the price of our product.
Because the value we can generate.
Increase in parallel to the increasing day wheat grain price. So our first we need to make sure that we have the right capacity.
And so I think we also have.
It keeps the grant and the weak Greg by the way.
Excuse me.
Okay, well that makes sense, so with respect to the lunch I know 2022, you're launched only in North Dakota or parts of North Dakota and.
And according to your presentation it looks like you're expanding in the next year for 2023 and Montana.
And the three western Canadian provinces.
So the Alberta and Saskatchewan.
First of all is that still your plan and the next question is are you planning to expand.
Beyond those two states and three provinces in Canada like for example, or are you going to expand into Europe .
So at least for it.
The.
The initial plan the original plan is presented.
Which means we were planning to extend mainly in the United States and also to Canada.
Got it.
And now we would like to accelerate the penetration and we are we are debating application to it's got to work with our board. It's also a two European market.
It might take a little bit longer because they are the regulatory process in Europe .
From the U S and Canada, but maybe it will change and it would be way to accelerate the day the approval due to what's going on there. These days in the world. So let's see let's see.
Okay, and then with respect to a wild 311.
There you've indicated those are about your use.
Our doing regulatory filings in 2022 in anticipation of a 2020 for commercial launch.
But you've only mentioned the filings in the United States in California.
But in your presentation you talk about.
Your markets being North America, and Europe , So will you be doing the regulatory filings.
In other states provinces in Canada, and in Europe , and if so when do you expect to do those.
So we'd like to initiate the regulatory process in more than one place, but based on previous experience.
The probability to win.
And approval to market such a product in the U S.
On shorter than the time needed in Europe . So we believe that launching the product in the commercial level.
Probably we will initiate in the U S.
Probably in California, or in the eye and another.
Faith in them.
In the West coast in the U S but of course.
And our topic in parts of Europe , and actually the field trials that we are conducting for this product in Europe , which we.
We started in Europe , and in Italy, and we expand to U S. So yes, we would like to see this product can be two continents, and other contaminants as well, but the probably the first car T that.
You'll be able to stop the marketing process it could be with mainly because they were gonna towards broker.
Okay. So what's interesting about lobby deal compare to your other subsidiaries is that 28% a lobby deal is actually owned by CT tape out which is a multinational Ah Ah Ah.
Agricultural company I guess, we can all of Dow Dupont. So how involved is core team.
In.
The operations of lobby PEO and so.
And would they be willing to provide additional financing.
And so.
About half are represented in any.
Oh yeah.
<unk>.
He is leading the umbrella.
Uh huh.
He is really Uh huh.
Huge knowledge in this field.
And I find it.
Really enjoy working with him.
And a lot of things.
Hum.
Oh and.
And things.
Having him as a board member.
Hum.
We have ongoing collaboration with Teva.
Hum.
Thank you need different type of product.
And.
It's really advancing nicely.
And I think that there is a high end.
Yeah.
Hi, and projection from both teams are one to each other.
I I believe that there will be projects coming from this activity.
And you know.
And definitely if you're all working on the corn and soybean where there is only two companies in the world.
The thing you probably would like to work with one of them is the buyer and the second one is a core pillar and we all welcome you spoke to I think we are very very proud to be working with them together, so both or.
And so doing Baldwin.
And direction in the board level, which is really great and also at the.
Commercial partners.
In the R&D level, which I hope will materialize.
Material like product.
Product that we'd be a market we'd be commercialized like whatever.
Okay. Thank you, let me move on to our climate.
In the past, but not today, you've referred to a P. T. H one attaining a lead status and I think you announced that in November .
Of 2020.
And I had the and your company has always talked about the next stage becoming of the molecule, becoming an optimized lead but I guess, there's different language being do so is a P. T H one becoming.
Is the plan still got it becomes an optimized lead sometime in 2022.
Okay. So.
Thank you first for discussion.
To elaborate a little bit about it but just given that say that they're probably right.
They have to let other people also to ask some questions. If there are some.
More people on the call.
And we can definitely have you know and they do on and offline.
A discussion and I hope, we'd be more than happy to address all of your other question. So with respect to the act plano's. So one of the things that we learned.
You are talking with.
The the Big Chemical company is that Oh.
Their interest on this specific molecule.
It does.
They are much more interesting on target.
The packages they are looking at on the target started meeting at protein.
Where would you say you know what.
And your protein dependent country there is no.
A program in a commercial product that you're focusing on the specific protein and that they would like to see U K filed a few groups of chemistry that show evidence the windy linked to Oh, we can prove it.
E brokerage activity, which lead to the death of the week.
And theyre not necessarily they would like to see it.
Our molecule AR.
Eh, the pivot and extra format and this is the only information that you have so thinking about the borrowings that we'd like to see a new mode of action.
Protein, but they would like to see your group of chemistry.
Binding to show that they have some efficacy or with respect to the specific protein, but what we are doing these.
These days is really trying to get the type of care package in order to move to the next phase with you since the collaborations that you reach an interesting. It. So yes, we are.
We are still advancing H P H one.
Leaving the leading group of chemotherapy, but now these days, we are also investing and focusing and spending our resources towards more group of chemistry to reach to bleach phase or two.
Or do you think it'll probably take in there.
All binding.
Protein.
And why why it's so important because problem from what we learn from them.
The company Julian is that the peripheral.
When you have such package too.
Two weeks at the end of the day a commercial product.
Hi.
All he wanted to get parts or it only one the only one chemistry did show a nice indication so the.
We changed our focus from volume.
You know what a single molecule to a protein and the like the cloud.
Chemistry binding protein because it's interesting as more interesting what the industry people interesting yet.
You changed the terminology and we a whole focusing today on top of it.
The protein rather than.
Okay.
Okay. Thank you.
And I I. Thank you for taking all that time and answering my myriad of questions and I. Appreciate it actually it's my pleasure widening I enjoyed talking with you I just want to make sure that you know.
In there.
And timeframe.
They're aimed analyst call.
Sure.
So I won't ask any more questions. Thank you very much. Thank you.
We can have we know we can have an offline discussion. Thank you.
You please.
Next question is from Brett Reiss of Janney Montgomery Scott. Please go ahead.
Yeah.
Hi, all for how are you.
Okay. Thank you.
The.
Patients that start to use the G 150, and G 200 cannabis product.
Is that a kind of repeat prescription you know once they start using it they use it for quite some time or is it a kind of one and done.
Prescription use.
So usually.
Ah Ah patient.
It didn't cause us pause.
Cause issues.
<unk> a M.
Every month again, and again and again you have to be if it wanted to get a pain Huntington disease. So they continue to buy and.
Yeah.
They continue to buy.
It collapsed product.
The good news is that we still with me when we were just extra G 150 is it.
Patient with me.
Well with our product for the first night they.
Continuing to buy it again and again.
And how about.
To be precise.
Fiction.
Did they receive called the Doctor.
No.
Product.
Product type, meaning they can go and buy it.
One of the brands are variable.
Intercut to go eat what's it called T T 20 people.
Thank.
Do you think there could be few product in each category. So that the patient yes, they will buy.
Cannot be every month.
But they can move from one brand to another brand and they allowed to do so.
So I hope that the rest of your question.
They said it.
Very closely.
What we're supposed to be told that people didn't vote.
G 150.
Product once they continue to buy.
Marty.
Right right well, thank you for that.
Then with respect to spring wheat.
I'm just interested in the feedback that you're getting from your distributor in North Dakota, I mean, I suppose you know they've shown it to a lot of farmers and not every farmer decides to use it.
The farmers.
That do not use it you know what is the typical.
<unk> sales resistant points is it price is it they just want to see that it works with you know maybe a fellow farmers you know crop before they try it on the afraid it hurts their crop and anyway, you know what what what's the typical sales resistance.
And what is your your counter your salespeople counter argument to that.
So royalty.
We still don't have this information what they can tell you that all the quantity that we were planning to the U S. P. A.
It wasn't huge it wasn't because we what we wanted to make sure that we are going to have a full control on all the status.
The problem is that they're going to use our product. The first game because we want to make sure that you are building the right reputation to our pros.
So I don't have the information in <unk> and what was the reason.
Too little and use our product and we tell you how.
How do I see the situation.
First one.
You know you need to educate the peak zone.
To the board.
I can make a difference.
This is the main obstacle smelt they need to replace the product.
You can try it for the first time and then usually what farmers are doing.
Quantity.
Give them enough information.
The text of this product.
Hey, Doug.
The only portion from the from the field.
So yeah.
If you could parse out in the field.
The positive effect, so the hela after they're going to buy it or not significant portion of the phone and then they can be.
That's about it he knows on a regular basis.
So what I'm, saying is that right.
It's hard for me to see the.
People want.
We have a problem.
Our initiative.
Quantity I think it's really important that it would have an expression.
You know.
Definitely they shouldn't be.
And Uh huh.
And then you will see a significant goals.
Do you often it isn't how you usually you introduced a new product to the market and especially when you're talking about a logical because you get them, leaving like book.
Right.
Okay.
Ofer is the window open for upper management and board members to buy stock on the open market. You know should they are you know decided.
Decided to do that.
Hi.
Check it with our attorney and currently.
Oh Wow.
Yes.
We want we can do even though we can't go to Justin.
I'm not really a question but.
You know.
Some of the retail type holders of the stock you know Oh, you know their morale is bolstered up when they see a insider purchases.
Purchases I just lay that out there for you.
Okay.
Thank you very much for taking my questions I appreciate it.
More than welcome.
Yeah.
There are no further questions at this time before I ask Mr. Al So companies to go ahead with this closing.
Closing statement I would like to remind participants that a replay of this call is scheduled to begin in two hours. After the conference in the U S. Please call 18883 to 69310 in Israel. Please call 039 to 55901.
Internationally. Please call nine seven to three nine to 55901, Mr. Javier, but do you like to make your concluding statement.
Yeah. Thank you I would like to thank everybody for participating in this day and age.
I know these calls are really looking for was it.
He will just progress and of course, we would go up I'm happy to continue to update you on our achievements.
And thank you once again.
Thank you. This concludes averaging fourth quarter 2021 results conference call. Thank you for your participation you May go ahead and disconnect.
Okay.
Okay.
Mhm.
Yeah.
Okay.
Yeah.
Yeah.
Okay.
Okay.
[music].
Yeah.
Okay.
Okay.
Mhm.
Hum.
[music].