Key Takeaways:
- Cibus, Inc. reports a pivotal year following the merger with Calyxt and significant commercial strategy advancements.
- The company has made progress with its three developed traits: Pod Shatter Reduction in Canola, and herbicide tolerance traits HT1 and HT3 in Rice.
- EU Parliament’s vote to advance new regulations on gene editing technologies marks a significant industry milestone, potentially easing the commercialization path for Cibus’s products.
- Cibus prepares for further commercialization, with key developments in trait and platform technology expected in 2024.
- Fourth quarter financial results show a net loss of $277.2 million, attributed largely to a non-cash goodwill and intangible assets impairment of $249.4 million.
Progress and Commercialization
Cibus, Inc. (Nasdaq: CBUS), a leader in agricultural biotechnology, today outlined its quarter ending December 31, 2023, financial performance and provided updates on its business operations. The company emphasized its transition from research and development to a focus on commercialization, highlighting advancements in its product offerings.
Rory Riggs, Co-Founder, Chairman, and CEO of Cibus, stated, “2023 was a pivotal year for Cibus… The centerpiece of our commercialization goals are the commercial advancement of each of our three developed traits.” He underscored significant progress with these traits, including customer transfers and ongoing field trials, as well as advancements in the company’s Rapid Trait Development System™ (RTDS).
Financial Highlights
The fourth quarter saw Cibus posting a net loss of $277.2 million, significantly influenced by a non-cash goodwill and intangible assets impairment of $249.4 million. Research and Development (R&D) expenses rose to $14.2 million from $2.3 million in the previous year, reflecting increased lab, facility expenses, and employee headcount. Selling, General, and Administrative (SG&A) expenses also increased to $6.8 million, up from $1.0 million in the prior year.
Despite the financial challenges reflected in the impairment and net loss, Cibus emphasized its strong cash position, with cash and cash equivalents standing at $32.7 million as of December 31, 2023. The company believes this will support its operations and capital expenditure requirements into early in the third quarter of 2024.
Industry and Regulatory Milestones
A notable highlight for Cibus and the agricultural biotech industry was the EU Parliament’s vote in February to advance new regulations on gene editing technologies. This development could significantly ease the pathway for Cibus’s products in the EU market, representing a pivotal moment for the company and the broader industry.
Looking Ahead to 2024
Cibus outlined several development and commercial milestones for 2024, including the expectation of further customer engagement for its Pod Shatter Reduction (PSR) in Canola and advancements in Sclerotinia resistance and Herbicide Tolerance (HT2) traits. The company also highlighted the operationalization of its Soybean platform and the development of productivity traits for Wheat as key objectives for the coming year.
Recent News on Cibus
Collaborate With Loveland Products (2024/02/27)
Cibus, Inc. and Loveland Products, Inc. have partnered to enhance Loveland’s rice seed genetics by integrating Cibus’ non-GMO plant traits, specifically developing herbicide tolerance for the southern US rice market. This collaboration aims to address weed management challenges in rice cultivation through innovative genetic solutions, leveraging Cibus’ RTDS-based High Throughput Breeding System. The partnership offers insights into the future of plant breeding and regulatory acceptance of gene-edited crops.
Applauds EU Parliament’s Vote in Favor Of NGTs (2024/01/26)
Rice Traits HT1 & HT3: A Step Towards Enhanced Herbicide Tolerance (2024/01/18)
Cibus, Inc. has made progress in commercializing its developed traits in rice and canola. Its herbicide tolerance traits HT1 and HT3 in rice have exceeded performance expectations, and the pod shatter reduction trait in canola is moving towards commercialization. Cibus’ High Throughput Breeding System and gene editing advancements represent a significant milestone in agricultural technology.
Announces Breakthrough in Wheat Cultivation (2024/01/10)
Cibus, Inc. has achieved an advancement in wheat cultivation by regenerating plants from single cells, marking a significant step in gene editing for this crucial global crop. This development, achieved ahead of schedule, paves the way for scalable and accelerated trait development in wheat, focusing on disease resistance and nitrogen use efficiency. The breakthrough, facilitated by Cibus’ RTDS®-based High Throughput Breeding System, underscores the company’s commitment to addressing key challenges in global wheat farming, such as reducing carbon footprint and enhancing wheat quality. This pioneering achievement in agricultural technology is a testament to Cibus’ innovation in gene editing and its potential impact on global food security.
Partners with Interoc (2024/01/04)
Cibus Inc. has formed a strategic partnership with Interoc, a company with over 25 years of expertise in Latin American agriculture, to integrate Cibus’ gene editing technology into rice agriculture. This collaboration aims to introduce Cibus’ herbicide tolerance traits, HT1 and HT3, into Interoc’s elite rice genetics, focusing on the Latin American market. The partnership addresses challenges in weed and resistance management, aiming to enhance rice yields and productivity. This agreement enables Interoc to expand its trait portfolio, combining its genetics with Cibus’ technology. Cibus, known for its gene editing capabilities and focus on major global crops, is set to make a significant impact in Latin American rice agriculture through this collaboration.
Announces New Stock Offering (2023/12/13)
Cibus Inc. has priced an offering of its Class A Common Stock and Pre-Funded Warrants generating significant gross proceeds. The shares are offered at $9.00 per share except for executive officers who can purchase them at $10.58 per share. The Pre-Funded Warrants are priced at $10.57 and are exclusively available to executive officers. The offering is expected to close around December 14, 2023. Cibus plans to utilize the net proceeds to enhance its innovative trait development and maintain its competitive edge in the agricultural technology sector. Investors can access the prospectus supplement on the SEC’s website or request copies from Stifel or Canaccord Genuity.
Cibus Inc.’s Milestone in Gene Editing for Agriculture (2023/12/01)
Cibus Inc. announced a significant achievement with the publication of their research on gene editing in Brassica napus. The paper details the development and application of Cibus’s Trait Machine™ System, offering a precise and scalable method to enhance breeding in canola. The potential impact of this technology on global agriculture is immense. Cibus’s focus on sustainability and productivity, coupled with its innovative Trait Machine™ System, positions it as a key player in addressing global agricultural challenges.
Jim Collins Joins Cibus Board (2023/09/19)
Jim Collins, former CEO of Corteva Agriscience, has joined Cibus’ board of directors to bolster the company’s strategic vision and commercialization efforts in agriculture. Collins will focus on areas critical to farming productivity, such as disease and pest control, and will bring immense knowledge and strategic vision to the company. Collins’ experience leading Corteva is expected to provide valuable insights into the future role and use of gene editing in agriculture.
Calyxt and Cibus Merge to Create Gene Editing and Plant Breeding Leader (2023/01/18)
Plant-based synthetic biology company Calyxt and precision gene editing leader Cibus are set to merge in an all-stock transaction to create a new industry-leading company. The merger will establish one of the world’s most sophisticated facilities for trait development and next-generation plant breeding. The combined company will be a leader in two key applications for gene editing in agriculture: Productivity Traits and Renewable Low-Carbon Ingredients. The merger is expected to close in the second quarter of 2023, subject to customary closing conditions, including approval of the merger by the shareholders of Calyxt.
Fund Expands Agritech Portfolio (2022/05/17)
Cibus Fund II LP has acquired a majority stake in Withcott Seedlings, a leading Australian vegetable seedlings business. Withcott Seedlings produces and supplies vegetable seedlings to growers across Eastern Australia. The partnership will enhance production efficiency using automation technology and robotics. Additionally, the team plans to target environmental planting projects to facilitate growth opportunities in the carbon offset plantings market. Withcott Seedlings has strong ESG focus aligns with the Funds’ investment philosophy. The Cibus Fund II LP targets mid-market food production and processing businesses.
Image provided by Cibus
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