Evogene's Board Fights to Preserve Its AI Pivot Amid Proxy Battle

The Fight for the Board

The second-quarter earnings call for Evogene was not a typical biotech update. It opened with Chairman Nir Nimrodi addressing a current Board under siege—a group of dissident shareholders demanding the replacement of the entire board. Nimrodi framed the vote as a choice between disruption and a proven turnaround:

Over the past 18 months, we haven't just talked about change, we have delivered it. We have fundamentally transformed Evogene into a lean, AI-driven leader in computational chemistry for pharmaceuticals and crop protection.

The chairman's defense was emphatic: the transformation is already underway, and replacing the board now would jeopardize the momentum. He cited specific accomplishments—six drug development agreements, headcount cut from 117 to 38, and a reduction in cash burn from $20.5 million in 2024 to a projected $8.5–$9.5 million in 2026. The board also offered to add dissident representatives, a proposal that was rejected. Nimrodi argued that the dissidents have presented no strategic alternative.

The ChemPass Engine

CEO Ofer Haviv reinforced the board's message by detailing the progress of the company's core platform, ChemPass AI. Two of six collaborations have already completed the initial Hit ID step, and results exceeded partner expectations. Internally, the platform has moved from step 2 to step 3, lead optimization. Haviv highlighted a major upgrade to the computational engine:

The virtual chemical space has expanded from 36 billion to 110 billion molecules, a testament to the platform's scalability. These developments are designed to drive both near-term collaborations and the company's high-value internal pipeline, including a novel fungicide targeting Septoria—a crop disease with significant resistance problems.

Financial Discipline

The financial results reflect a company that has dramatically cut costs. The second-quarter net loss narrowed to $1.8 million, a 62% improvement year-over-year, driven by lower operating expenses and reduced losses from discontinued operations. Cash usage for the quarter was $2.1 million, and the company raised $0.8 million through its ATM program during Q2 and an additional $2.4 million in Q3. This disciplined approach was underscored by the cash burn guidance. However, revenue fell to $0.3 million in Q2 due to the conclusion of the Bayer agreement and lower Casterra seed sales—a reminder that the pivot is still early.

In the Q&A, management addressed shareholder concerns about the share price and investor relations. Haviv acknowledged the frustration and committed to a more aggressive IR push:

This reflects a shift from last year, when management was more cautious about the timeline for big-pharma adoption. In the Q1 2026 call, Haviv noted:

Now, with six collaborations and a validated platform, the tone is more confident.

The Bigger Picture

Evogene's story is part of a broader wave of Memory pricing? No—it's really about the rise of AI-driven drug discovery, a theme echoed across many recent earnings reports. Yet Evogene's situation is unique: it's a small-cap company that has intentionally shrunk to focus on a high-risk, high-reward computational chemistry bet. The proxy fight adds a layer of urgency and uncertainty. The board is asking shareholders to trust that the transformation will eventually translate into value, even as the share price remains depressed.

The next few months will be critical. The company expects to move its internal program into preclinical trials in the second half of next year, a milestone that Haviv calls "an inflection point." The outcome of the shareholder vote will determine whether that path continues under current leadership.