For Gimv, California reduces risk at Biotalys

Regulatory approval can seem binary: granted or denied. For an investment firm's shareholder, the real question is more interesting. Which piece of risk has just disappeared, which value can now advance - and which obstacles remain entirely intact? EVOCA's California registration provides a good exercise in reading Gimv's historical portfolio.

The Essentials

The California Department of Pesticide Regulation has registered EVOCA, Biotalys' first protein-based biofungicide. The product had already received federal approval from the EPA in December 2025, followed by approval from Florida. The California decision validates the same active ingredient and the same AGROBODY platform as the future EVOCA NG, which Biotalys plans to launch in the United States in 2029. For Gimv, this represents a credible regulatory de-risking of a still small and non-commercial asset.

Why this matters to Gimv

Gimv directly held 6.05% of Biotalys' voting rights after the May 2026 fundraising. Together with Biotech Fonds Vlaanderen, whose stake Gimv manages under an agreement with the Flemish Region and PMV, the combined holding reaches 11.41%. Biotalys is one of Gimv's ten historical life sciences investments, tracked separately from the core of its 49 platforms. This milestone is therefore significant as evidence of patient management of a technological legacy, not as the primary driver of the €2.41 billion NAV.

What was approved - and what wasn't

California recorded EVOCA, a protein-based biofungicide for controlling botrytis and powdery mildew on fruits and vegetables. The decision follows the public consultation completed in July and complements the federal authorization and the registration obtained in Florida.

The future commercial product announced by Biotalys is, however, EVOCA NGThis next-generation version is based on the same active ingredient and platform, but still needs to follow its own development and filing path. Biotalys believes that the authorization of EVOCA sets a useful regulatory precedent; this is a reasonable assertion, not a guarantee of expedited approval.

The de-risking path as seen from Gimv

Why California is a demanding test

California combines a major agricultural market for high-value crops with a notoriously rigorous regulatory process regarding health, the environment, and efficacy. Passing this review therefore lends more weight to Biotalys' scientific case than approval in a secondary jurisdiction.

For Gimv, this is an example of how value can be built before revenue. An agricultural biotech company is worth more when its main scientific and regulatory risks decrease. But until a product is industrialized and sold with a proven margin, its value still rests on probabilities.

A good example, but not a new Gimv thesis

The pitfall would be to let the size of the target market-$1.1 billion according to Biotalys, based on a 2020 Kynetec study-give the impression of an achievable revenue. An addressable market is neither a sales forecast nor a market share. The US launch schedule remains set for 2029 and Europe for 2030.

Biotalys' weight within the Gimv group is not published separately in the half-year results. It is likely modest relative to the total portfolio, but this assessment should remain an evaluation, not a fabricated figure. The editorial interest lies precisely in this: a small line item can demonstrate the quality of a holding company's industrial and regulatory oversight without, on its own, altering its entire value.

Opulion Reading: The Value of an Option Becomes a Little Less Theoretical

California Does Not Transform Biotalys into a Commercial Enterprise. It Withdraws an Objection: The protein platform has now passed the scrutiny of a jurisdiction that was difficult for EVOCA. For Gimv, the option on EVOCA NG thus gains credibility.

The next step will need to be of a different nature. It will be necessary to demonstrate that the new formulation can obtain approvals, be produced at scale, and find customers with satisfactory economic viability. The September 2nd milestone is therefore useful because it increases the probability of success-and exciting only if one keeps in mind the entire distance that remains to be covered.

Methodological Note

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