Compugen ((CGEN)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Compugen’s recent earnings call painted a mixed picture for the company’s financial health and strategic direction. While the company is grappling with financial challenges, including a significant revenue decline and net loss, there is optimism surrounding its strategic focus on Fc reduced anti-TIGIT programs and promising partnerships, particularly with AstraZeneca. The potential for substantial milestones and royalties from these partnerships, along with promising clinical data for ovarian cancer treatments, offers a glimmer of hope for the future.
Strong Position in Fc Reduced Anti-TIGIT Programs
Compugen is placing a strategic emphasis on its Fc reduced anti-TIGIT programs, which are believed to offer advantages over Fc active anti-TIGIT antibodies. The company highlighted the potential for improved immune activation and safety profile of COM902, an Fc reduced anti-TIGIT monoclonal antibody. A significant catalyst is expected with Phase III data from Arcus Gilead anticipated in 2026.
Substantial Potential for AstraZeneca Partnership
The partnership with AstraZeneca for RILVA, an Fc reduced anti-PD-one TIGIT bispecific, is projected to have a significant commercial opportunity. The non-risk adjusted peak year revenue target exceeds $5 billion, with Compugen eligible for regulatory and commercial milestones and mid-single digit tiered royalties.
Promising COM701 Data for Ovarian Cancer
Phase I trials of COM701 have shown clinical benefits for heavily pretreated platinum-resistant ovarian cancer patients, especially those without liver metastasis. The ongoing MYA ovarian platform trial is addressing a critical need for maintenance therapy in platinum-sensitive ovarian cancer.
Significant Revenue Decline
Compugen reported a substantial revenue decline for the third quarter of 2025, with revenues at approximately $1.9 million compared to $17.1 million in the same period of 2024. This decrease is attributed to the recognition of upfront and milestone payments from a previous license agreement with Gilead.
Extended Timelines for Clinical Trials
The MYA ovarian platform trial’s interim analysis has been extended from 2026 to Q1 2027 due to factors such as site openings and enrollment rates, potentially delaying the program’s progress.
Net Loss Compared to Previous Year
Compugen reported a net loss of approximately $6.98 million for the third quarter of 2025, compared to a net profit of approximately $1.28 million in the same period of 2024, highlighting the financial challenges the company is facing.
Forward-Looking Guidance
During the earnings call, Compugen provided guidance on its strategic initiatives and financial outlook. The company remains committed to advancing its differentiated Fc reduced anti-TIGIT programs, with anticipated readouts in 2026. The partnership with AstraZeneca is expected to yield significant commercial opportunities, with an estimated peak year revenue target of over $5 billion. Compugen’s financial outlook includes a cash runway expected to fund operations into 2027, with a cash balance of approximately $86 million as of September 30, 2025.
In summary, Compugen’s earnings call reflects a company navigating financial hurdles while strategically positioning itself for future growth through innovative programs and partnerships. Despite the current financial challenges, the potential for significant milestones and royalties from partnerships, along with promising clinical data, provides a hopeful outlook for investors and stakeholders.