Compugen Reports Third Quarter 2024 Results
Rhea-AI Summary
Compugen (NASDAQ: CGEN) reported Q3 2024 financial results and corporate updates. The company presented clinical data for COM701 at SITC 2024, showing durable responses in immunotherapy-resistant tumors. Plans include initiating an adaptive platform trial for COM701 in Q2 2025 for ovarian cancer patients. The company reported $17.1 million in revenues and a net profit of $1.3 million for Q3 2024. Cash position stands at $113.2 million, expected to fund operations into 2027. Partner AstraZeneca advanced rilvegostomig into additional Phase 3 trials, while COM503's Phase 1 trial is set to begin in Q4 2024.
Positive
- Received $30 million milestone payment from Gilead for COM503 IND clearance
- Q3 2024 revenues of $17.1 million compared to no revenues in Q3 2023
- Net profit of $1.3 million in Q3 2024 vs net loss of $9.9 million in Q3 2023
- Strong cash position of $113.2 million, providing runway into 2027
- R&D expenses decreased to $6.3 million from $8.3 million year-over-year
Negative
- G&A expenses increased to $2.6 million from $2.3 million year-over-year
News Market Reaction
On the day this news was published, CGEN declined 8.05%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Clinical data presented at SITC 2024 demonstrated COM701 (anti-PVRIG) mediated anti-tumor activity with durable responses and good tolerability profile in tumors typically not responding to immunotherapy, aligned with previous data presented by the Company
- Plans to initiate, in Q2 2025, an adaptive platform trial in patients with relapsed platinum sensitive ovarian cancer in the maintenance setting, to evaluate single agent COM701 and future combinations representing an unmet need and regulatory and commercial opportunity
- On track to initiate Phase 1 trial evaluating COM503 (anti-IL18BP) in solid tumors in Q4 2024
- Partner AstraZeneca reported encouraging rilvegostomig data at WCLC and ESMO 2024 and advanced rilvegostomig into two additional Phase 3 lung cancer trials
- Solid balance sheet with expected cash runway into 2027 anticipated to reach potential key catalysts, including projected COM701 sub-study 1 interim analysis and support advancement of COM503 in the clinic
HOLON,
"A highlight of the third quarter was the presentation of our validating COM701, COM902, pembrolizumab combination data in heavily pre-treated platinum resistant ovarian cancer (PROC) patients at SITC last week," said Anat Cohen-Dayag, Ph.D., President, and Chief Executive Officer of Compugen. "We are highly encouraged that this study confirms previously presented data supporting COM701 mediated durable responses with a good tolerability profile in advanced heavily pre-treated patients. Feedback received from ovarian cancer experts supports advancing development of COM701 in an earlier disease setting. There is a need for durable and well tolerated treatment options in relapsed platinum sensitive ovarian cancer (PSOC) patients who have received prior maintenance treatment and have no options for additional maintenance therapy. These patients are less immune compromised, than more advanced patients, providing the opportunity to harness the unique mechanism of action of COM701 to potentially change the disease trajectory and improve progression free survival. In addition, since there is no established treatment for these women, targeting this patient population to evaluate COM701's single agent activity and as a potential backbone for future combination treatments, presents a regulatory and commercial opportunity. We look forward to initiating an adaptive platform trial, starting with sub-study 1 randomizing patients with relapsed PSOC to single agent COM701 maintenance treatment or placebo in the second quarter of 2025. Since the median progression free survival of these patients is around 6 months, and this is a less competitive space than PROC for enrollment, we project having data from the interim analysis of sub-study 1 in the second half of 2026."
Dr. Cohen-Dayag continued, "In the third quarter of 2024, we received a
Dr. Cohen-Dayag added, "Our partner, AstraZeneca, continued to advance development of rilvegostoming, their PD-1/TIGIT bispecific of which the TIGIT component is derived from COM902. In September 2024, AstraZeneca presented clinical data showing promising efficacy and a manageable safety profile in trials evaluating rilvegostomig monotherapy in lung cancer and in combination with chemotherapy in gastric cancer at the WCLC and ESMO, respectively. They also initiated two additional Phase 3 trials bringing the total number of ongoing Phase 3 trials to five. We are eligible for future milestones and mid-single-digit tiered royalty payments, presenting a significant potential revenue source for the Company."
Next Planned Milestones
- Q4 2024- on track to initiate Phase 1 study of COM503 in solid tumors
- Q2 2025- plan to initiate an adaptive platform trial starting with sub-study 1, randomizing patients with relapsed platinum sensitive ovarian cancer ineligible for PARPi or bevacizumab to single agent COM701 maintenance treatment or placebo
- H2 2026- data from projected COM701 interim analysis from sub-study 1
Third Quarter 2024 Financial Highlights
Cash: As of September 30, 2024, Compugen had approximately
Revenues: Compugen reported approximately
R&D expenses for the third quarter ended September 30, 2024, were approximately
G&A expenses for the third quarter ended September 30, 2024, were approximately
Net Profit for the third quarter ended September 30, 2024, was approximately
Full financial tables are included below
Conference call and webcast information
The Company will hold a conference call today, November 12, 2024, at 8:30 am ET to review its third quarter 2024 results and will be joined on the call by Dr. Oladapo Yeku, Assistant Professor of Medicine, Harvard Medical School, and Director of Translational Research, Gynecologic Oncology Program, Massachusetts General Hospital,
About Compugen
Compugen is a clinical-stage therapeutic discovery and development company utilizing its broadly applicable predictive computational discovery platform (Unigen™) to identify new drug targets and biological pathways for developing cancer immunotherapies. Compugen has two proprietary product candidates in Phase 1 development: COM701, a potential first-in-class anti-PVRIG antibody and COM902, a potential best-in-class antibody targeting TIGIT for the treatment of solid tumors. Rilvegostomig, a PD-1/TIGIT bispecific antibody where the TIGIT component is derived from Compugen's clinical stage anti-TIGIT antibody, COM902, is in Phase 3 development by AstraZeneca through a license agreement for the development of bispecific and multispecific antibodies. In addition, the Company's therapeutic pipeline of early-stage immuno-oncology programs consists of programs aiming to address various mechanisms of immune resistance, of which the most advanced program, COM503, a potential first-in-class, high affinity anti-IL-18 binding protein antibody, which has been granted IND clearance from the FDA, is licensed to Gilead. Compugen is headquartered in
Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations, and assumptions of Compugen. Forward-looking statements can be identified using terminology such as "will," "may," "expects," "anticipates," "believes," "potential," "plan," "goal," "estimate," "likely," "should," "confident," and "intends," and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements include, but are not limited to, statement regarding our plan, and the timing thereof, to initiate clinical trials; statements regarding our expectations as to when we will have clinical data from our clinical trials; and statements regarding our expectation that existing cash and cash related balances will be sufficient to fund our operating plan into 2027 and the catalysts reached with such cash and cash balances. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance, or achievements of Compugen to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Among these risks: Compugen's business model is substantially dependent on entering into collaboration agreements with third parties and Compugen may not be successful in generating adequate revenues or commercializing aspects of its business model; Compugen may not be able to advance its internal clinical stage programs through clinical development or manufacturing or successfully partner or commercialize them, or obtain marketing approval, either alone or with a collaborator, or may experience significant delays in doing so; clinical development involves a lengthy and expensive process, with an uncertain outcome and Compugen may encounter substantial delays or even an inability to begin clinical trials for any specific product or may not be able to conduct or complete its trials on the timelines it expects; Compugen has limited experience in the development of therapeutic product candidates, and it may be unable to implement its business strategy; the general market, political and economic conditions in the countries in which Compugen operates, including
Company contact:
Yvonne Naughton, Ph.D.
VP, Head of Investor Relations, and Corporate Communications
Email: ir@cgen.com
Tel: +1 (628) 241-0071
COMPUGEN LTD. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
( | |||||||
Three Months Ended | Nine Months Ended, | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Unaudited | Unaudited | Unaudited | Unaudited | ||||
Revenues | 17,132 | - | 26,393 | - | |||
Cost of revenues | 3,601 | - | 7,255 | - | |||
Gross profit | 13,531 | - | 19,138 | - | |||
Operating expenses | |||||||
Research and development expenses | 6,306 | 8,338 | 18,899 | 23,544 | |||
Marketing and business development expenses | 161 | 18 | 409 | 183 | |||
General and administrative expenses | 2,568 | 2,272 | 7,238 | 7,249 | |||
Total operating expenses | 9,035 | 10,628 | 26,546 | 30,976 | |||
Operating profit (loss) | 4,496 | (10,628) | (7,408) | (30,976) | |||
Financial and other income, net | 1,284 | 776 | 3,812 | 2,473 | |||
Profit (loss) before taxes on income | 5,780 | (9,852) | (3,596) | (28,503) | |||
Tax benefit (expense) | (4,504) | - | (4,518) | 36 | |||
Net profit (loss) | 1,276 | (9,852) | (8,114) | (28,467) | |||
Basic and diluted net earnings (loss) per ordinary share | 0.01 | (0.11) | (0.09) | (0.33) | |||
Weighted average number of ordinary shares used in computing | 89,535,679 | 88,310,329 | 89,524,411 | 87,372,604 | |||
Weighted average number of ordinary shares used in computing | 89,819,474 | 88,310,329 | 89,524,411 | 87,372,604 | |||
COMPUGEN LTD. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS DATA | ||||
( | ||||
September 30, | December 31, | |||
2024 | 2023 | |||
Unaudited | ||||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 7,216 | 13,890 | ||
Restricted cash | - | 365 | ||
Short-term bank deposits | 72,351 | 25,053 | ||
Investment in marketable securities | 33,139 | 11,742 | ||
Trade receivables | - | 61,000 | ||
Other accounts receivable and prepaid expenses | 2,122 | 2,529 | ||
Total current assets | 114,828 | 114,579 | ||
Non-current assets | ||||
Restricted long-term bank deposit | 539 | - | ||
Long-term prepaid expenses | 1,103 | 1,233 | ||
Severance pay fund | 3,146 | 2,977 | ||
Operating lease right to use asset | 2,946 | 1,329 | ||
Property and equipment, net | 954 | 1,216 | ||
Total non-current assets | 8,688 | 6,755 | ||
Total assets | 123,516 | 121,334 | ||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||
Current liabilities | ||||
Other accounts payable, accrued expenses and trade payables | 11,400 | 14,485 | ||
Short-term deferred revenues | 15,914 | 11,149 | ||
Current maturity of operating lease liability | 447 | 632 | ||
Total current liabilities | 27,761 | 26,266 | ||
Non-current liabilities | ||||
Long-term deferred revenues | 29,235 | 25,392 | ||
Long-term operating lease liability | 2,501 | 719 | ||
Accrued severance pay | 3,531 | 3,398 | ||
Total non-current liabilities | 35,267 | 29,509 | ||
Total shareholders' equity | 60,488 | 65,559 | ||
Total liabilities and shareholders' equity | 123,516 | 121,334 | ||
View original content:https://www.prnewswire.com/news-releases/compugen-reports-third-quarter-2024-results-302302282.html
SOURCE Compugen Ltd.
FAQ
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