Evolva completes “transformation”: EverSweet revenues on track, solid sales growth reported
01 Mar 2019 --- Swiss-headquartered biotechnology and fermentation company Evolva has completed its transformation process that began in August 2017. Releasing its latest financial results, the company says it’s seeing a solid product sales growth trend and has a well-developed product pipeline to support future sales growth. Evolva is also on track to develop a pest control ingredients business with the US Environmental Protection Agency (EPA) registration of its key ingredient nootkatone, expected in a couple of months.
Revenues increased to CHF 8.9 million (US$8.9 million) from CHF 6.8 million (US$6.8 million) in 2018, which is up by 31 percent. Revenues from product sales grew at a high double-digit percentage rate – in line with company guidance. Despite a seasonal dip during the summer months, product sales showed a solid growth trend in all segments, Evolva notes.
Total operating expenses decreased significantly by 30 percent (a decrease of CHF 14.1 million). According to Evolva, this reflects the restructuring measures implemented since August 2017, which aimed to streamline the organization and centralize R&D and other key functions at the Swiss headquarters.
In a letter to its shareholders, Evolva – which produces complex ingredients by fermentation – says: “The company today is a very different one compared to August 2017. It is much leaner and focused entirely on the execution of our strategy. There is a strong trend with consumers towards ingredients being more natural and with positive effects on health and which are produced in a sustainable manner. Our technology is playing a key role in this trend.”
In April 2017, Evolva entered into a major collaboration agreement with Cargill for the production and commercialization of EverSweet, a next-generation stevia sweetener. In March 2018, production of the product came on-stream.
Financial outlook 2019
Evolva expects the trend in product sales growth to continue throughout this year, supported by further growing the sales pipeline, increasing its geographical marketing reach and launching new product variants.
The revenue contribution from royalty payments related to EverSweet sweetener sales should start to increase in the course of 2019, notes Evolva.
The company expects the EPA to complete its registration of nootkatone as a novel active ingredient in the next couple of months. This will allow the start of the registration process of end-user products for different applications within pest control, before commercial sales may start going into 2020, it says.
Evolva targets a cash balance at the end of 2019 of between CHF 30 and CHF 35 million (US$30 million-US$35 million), which includes the settlement of the remaining contractual obligation related to EverSweet and scale-up costs for entering the pest control market.
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