Compugen (CGEN) Q2 2024 earnings summary

Executive summary

• Achieved FDA IND clearance for COM503, triggering a $30 million milestone payment from Gilead and extending cash runway into 2027.

• Advanced multiple clinical programs, including a triple combination (COM701, COM902, pembrolizumab) in platinum-resistant ovarian cancer, with data expected in Q4 2024.

• Partner AstraZeneca progressed rilzagatamig/rilvegostomig (PD-1 TIGIT bispecific, TIGIT derived from COM902) into three phase III trials, with projected non-risk-adjusted peak year revenue over $5 billion and eligibility for future milestones and royalties.

• Cash runway expected to fund operations into 2027; no debt.

Financial highlights

• Cash and equivalents were $92.3 million as of June 30, 2024, up from $51.1 million at year-end 2023.

• Q2 2024 revenue was $6.7 million, compared to no revenue in Q2 2023, reflecting license and milestone payments.

• R&D expenses for Q2 2024 were $6.2 million, down from $7.8 million in Q2 2023; G&A expenses were $2.2 million, down from $2.4 million.

• Net loss for Q2 2024 was $2.1 million ($0.02/share), a significant improvement from $9.3 million ($0.11/share) in Q2 2023.

• No debt on the balance sheet.

Outlook and guidance

• Cash and expected milestone payment projected to fund operations into 2027, including reserves for potential new trials.

• Data from the COM701/COM902/pembrolizumab triple combination in platinum-resistant ovarian cancer to be presented in Q4 2024, with next steps to be announced at that time.

• AstraZeneca expects data from phase I/2 ARTEMIS-01 and phase II GEMINI-Gastric trials in the second half of 2024, with a Phase 2 trial presentation at ESMO 2024.

• Anticipated additional milestone payments up to $200 million and future royalties from partnerships.

• Initiation of COM503 Phase I trial planned for Q4 2024.