Evogene signs exclusive licensing deal with Lishan Biotech for BMC128
Evogene Ltd. shares surged by 19.26% in pre-market trading, reaching a 20-day high.
The price increase is attributed to Evogene's subsidiary Biomica entering into a global exclusive licensing agreement with Lishan Biotech for BMC128, a therapy aimed at enhancing anti-tumor immune activity. This strategic collaboration will allow Lishan Biotech to manage the global clinical development and commercialization of BMC128, which is currently in Phase 1 clinical studies for renal cell carcinoma and non-small cell lung cancer, showing promising safety and tolerability results. This partnership is expected to accelerate the therapy's market introduction and provide Evogene with milestone payments and royalties on future sales.
This agreement not only strengthens Evogene's position in the oncology market but also highlights the potential of BMC128 as a viable treatment option, paving the way for further advancements in cancer therapy.
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- Financial Overview: Evogene reported revenues of $334,000 for Q1 2026, a significant drop from $2.34 million in Q1 2025, indicating challenges in revenue growth that may impact investor confidence.
- R&D Collaboration Expansion: The company announced three new collaborations in the pharmaceutical sector, bringing the total to four, demonstrating Evogene's ongoing commitment to advancing small-molecule discovery and optimization despite its poor financial performance.
- Agricultural Project Progress: The AgPlenus subsidiary is advancing novel herbicide programs through collaboration with Corteva, while its internal fungicide program shows strong progress, highlighting the effective integration of AI-driven design with experimental validation, potentially providing a competitive edge in the market.
- Strategic Transformation and Outlook: Following the strategic transformation initiated in 2025, Evogene is now focused on execution, expecting to support long-term growth through enhanced technological collaborations and product pipeline expansion, despite currently facing financial losses.
- Earnings Performance: Evogene's Q1 GAAP EPS of -$0.60 misses expectations by $0.33, indicating significant challenges in profitability that could undermine investor confidence moving forward.
- Revenue Decline: The company reported revenue of $0.3M for the quarter, a staggering 100% year-over-year decline, falling short of the $0.05M forecast, reflecting severe market competition that may complicate future financing efforts.
- Cash Flow Situation: As of March 31, 2026, Evogene held approximately $13.1 million in cash and cash equivalents, with cash usage of about $2.8 million in Q1, highlighting increasing pressure on the company to maintain operations amid financial strain.
- Market Reaction Outlook: Given the poor financial performance, Evogene may face further scrutiny from Nasdaq, prompting investors to closely monitor the company's future financing and strategic adjustments to navigate its current financial challenges.
- Earnings Announcement Date: Evogene (EVGN) is set to announce its Q1 2023 earnings on May 20 before market open, with significant attention on its performance and future outlook.
- Expected Financial Metrics: Analysts project an EPS of -$0.27, reflecting a 28.9% year-over-year improvement, while revenue is estimated at $0.35 million, indicating a 100% year-over-year decline, highlighting the challenges the company faces.
- Historical Performance Review: Over the past two years, Evogene has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, indicating a degree of volatility in its financial performance.
- Market Reaction Anticipation: Investors will closely monitor the upcoming earnings report to assess Evogene's financial health and competitiveness in the biotechnology sector, particularly in light of its performance in the current market environment.
- Compliance Risk Notification: Evogene Ltd. received a notice from Nasdaq indicating non-compliance with Rule 5550(a)(2) after its shares closed below $1.00 for 30 consecutive business days, potentially leading to delisting risks.
- Compliance Deadline: The company must regain compliance by September 28, 2026, requiring its shares to close at or above $1.00 for at least 10 consecutive business days within a 180-day period, which is critical for its financing and market confidence.
- Response Measures: Evogene stated it would consider options, including a potential reverse stock split, to regain compliance, demonstrating its commitment to maintaining its Nasdaq listing.
- Market Reaction: Following the announcement, Evogene's shares fell by 3.16%, reflecting investor concerns about the company's ability to regain compliance, which could impact its financing capabilities and market image.
- Share Resale Plan: Evogene has filed a prospectus covering the resale of 5.08 million ordinary shares by a selling shareholder, which are issuable upon the exercise of warrants from a February 2026 inducement transaction, indicating the company's active engagement in capital markets.
- Warrant Details: The warrants involved include Series A-1 (5-year term) and Series B-1 (18-month term), both exercisable at $1.25 per share, reflecting the company's confidence in future stock price appreciation.
- Potential Revenue: Evogene expects to receive approximately $6.35 million if all warrants are exercised, which will provide additional financial support for the company's operations and R&D, enhancing its competitive position in the market.
- Selling Shareholder Gains: The selling shareholder may choose when to sell these shares and will receive all resale proceeds, a structure that could influence market liquidity and investor confidence in Evogene's stock.
- Conference Appearance: Evogene Ltd. will present at the BIO-Europe Spring 2026 conference in Lisbon, Portugal, from March 23-25, showcasing its latest achievements in the pharma division, which is expected to attract industry attention and enhance the company's visibility.
- Technology Breakthrough Presentation: Chief Development Officer Dr. Gabi Tarcic and VP of Business Development Dr. Olga Nissan will highlight AI-driven small-molecule discovery and optimization technologies, emphasizing how ChemPass AI™ is enabling new collaborative drug discovery opportunities, potentially fostering partnerships with pharmaceutical and biotech firms.
- Presentation Schedule: Evogene's presentation is scheduled for March 24, 2026, from 15:30 to 15:45, under the theme “Drug Discovery and Development,” which not only showcases the company's technological prowess but may also attract potential investors' interest.
- One-on-One Meeting Opportunities: Both Dr. Tarcic and Dr. Nissan will be available for one-on-one meetings during the conference, encouraging interested parties to contact Evogene's investor or public relations team to facilitate deeper engagement and collaboration.








