Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 63

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4
Chunk 63
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 prioritized certain product programs to be executed by Lavie Bio, and Lavie Bio committed to allocate a certain part of its research and development budget to these programs.
 
In August 2022, ICL and Lavie Bio entered a multi-year collaboration agreement for developing novel bio-stimulant products to enrich fertilizer efficiency. As part of the collaboration, an affiliate of ICL invested in Lavie Bio $10 million under a SAFE (simple agreement for future equity).
 

Market
 
According to the report titled Agriculture Biologicals by Type (Biocontrols, Biostimulants, Biofertilizers), Source (Microbials, Macrobials, Semiochemicals, Natural Products), Mode of Application (Foliar Spray, Seed Treatment, Soil Treatment) – Global Forecast to 20291, which is not incorporated by reference into this Annual Report, the market for ag-biological products was estimated at $16.7 billion in 2024, to reach $31.8 billion by 2029. The sales of ag-biological products significantly grew in past years following a shift in growers and consumer preferences to more sustainable and healthier practices, while driving agriculture productivity. The market growth is anticipated to be driven by improvement of the product attributes of ag-biologicals, such as efficacy, stability and commercial viability.
 
Companies in this market can be generally divided into three groups: (i) major seed and ag-chemical companies, such as BASF, Bayer, Syngenta and Corteva, with internal research and development units dedicated to development of ag-biological products, (ii) small to mid-size biotech companies specializing in ag-biologicals with their own product development programs, and (iii) academic and agricultural research institutions that pursue research activities in the field, typically focusing on early stage activities.
 
Business Model
 
Lavie Bio has defined two main models for market access:
 

(i)                              Direct sales model – in fragmented markets Lavie Bio expects to complete product development                          
      of its products independently, while establishing a tailored market access strategy per specific product and territory, such as commercialization
         through distribution channels. Under this model, the production of Lavie Bio’s products is achieved through third party toll manufacturers.   
                      Revenues may include sales to distributors. Under the direct sales model, Lavie Bio has sold its inoculant Yalos®                
                                              (formerly known as Thrivus™) in the U.S. for spring wheat growers.                                       
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(ii)                                                      Collaboration model