Cibus, Inc. Earnings Call: Progress Amidst Challenges

Cibus, Inc. ((CBUS)) has held its Q2 earnings call. Read on for the main highlights of the call.

Cibus, Inc. Earnings Call: Progress Amidst Challenges

The recent earnings call for Cibus, Inc. reflected a mixed sentiment, highlighting significant advancements and some hurdles. The company has made notable progress in commercializing its rice herbicide traits and biofragrance products, supported by positive regulatory developments. However, challenges such as delays in the EU regulatory process and a significant net loss were also discussed. The company’s strategic focus remains on cost reduction and effective capital allocation to manage cash usage efficiently.

Progress in Rice Herbicide Tolerance Traits

Cibus’s rice herbicide tolerance traits, HT1 and HT3, are advancing as planned, with the potential to generate over $200 million in annual royalty revenue. The company anticipates launching these traits in Latin America by 2027 and in the U.S. by 2028, marking a significant milestone in their commercialization strategy.

Biofragrance Commercialization

The company is set to begin generating nominal revenues from its biofragrance products later this year, with a strategic plan to ramp up commercial expansion by 2026. This marks an important step in diversifying Cibus’s product offerings and revenue streams.

Regulatory Advances

Cibus is experiencing positive regulatory developments across various regions, with ongoing acceptance of gene-editing technologies. A favorable outlook in the EU is laying a strong foundation for the global marketing of Cibus’s trait pipeline, despite some delays in the regulatory process.

Financial Position and Cash Management

As of June 30, 2025, Cibus held $36.5 million in cash and cash equivalents, with operations expected to be funded into Q2 2026. This financial stability is supported by a $27.5 million public offering, allowing the company to focus on extending its cash runway and reducing annual cash usage.

Reduction in Operating Expenses

Cibus has successfully reduced its operating expenses, with research and development costs decreasing by $800,000 and selling, general, and administrative expenses down by $2.7 million. These cost reduction initiatives are part of the company’s broader strategy to streamline operations and improve financial efficiency.

Regulatory Clearance for Alfalfa

The FDA has completed its review of Cibus’s altered lignin alfalfa trait, clearing the way for U.S. commercialization. This regulatory clearance is a significant step forward for the company, enabling it to expand its product offerings in the agricultural sector.

Delay in EU Regulatory Process

The EU regulatory process has faced delays, with trialogue discussions on gene editing postponed beyond the initial target. A resolution is now expected within the next six months, posing a temporary challenge for Cibus’s European market plans.

Net Loss

Cibus reported a net loss of $26.6 million for the second quarter, a slight improvement from the $28.5 million loss in the previous year. This highlights the ongoing financial challenges the company faces, despite its strategic efforts to reduce costs and improve efficiency.

Reduction in Force

Post-quarter-end, Cibus announced a reduction in force to streamline operations further. This move is expected to incur one-time charges of approximately $0.5 million in the third quarter, aligning with the company’s cost management strategies.

Forward-Looking Guidance

Cibus’s forward-looking guidance emphasizes the company’s focus on revenue generation and cash management. The rice herbicide tolerance traits are expected to drive significant revenue by 2026, with initial launches in Latin America and the U.S. slated for 2027 and 2028, respectively. The company also anticipates nominal revenue from biofragrance products starting later this year, with commercial expansion planned for 2026. Cibus aims to reduce annual cash usage to approximately $30 million by 2026, supported by its current cash reserves and recent public offering.

In summary, Cibus, Inc.’s earnings call presented a balanced view of progress and challenges. While the company is making strides in commercialization and regulatory advancements, it continues to face financial hurdles and regulatory delays. The strategic focus on cost reduction and cash management underscores Cibus’s commitment to navigating these challenges and achieving its long-term goals.