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Compugen Ltd (CGEN)
NASDAQ:CGEN
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Compugen (CGEN) AI Stock Analysis

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CGEN

Compugen

(NASDAQ:CGEN)

Rating:51Neutral
Price Target:
$1.50
▲(2.04% Upside)
Compugen's overall stock score is primarily influenced by its financial performance and earnings call insights. The company's strong cash position and strategic partnerships are positives, but ongoing profitability challenges and bearish technical indicators weigh heavily on the score.
Positive Factors
Financial Performance
Compugen ended the quarter with $104M cash and equivalents, which is expected to fund operations into 2027.
Partnerships and Collaborations
Compugen’s partner AZN’s continued expansion of rilvegostomig meaningfully derisks the royalty stream to Compugen, minimizing capital risk and setting a baseline valuation for CGEN.
Stock Rating and Price Target
The price target has been revised to $10 from $7, reiterating an outperform (OP) rating.
Negative Factors
Investor Sentiment
Investor sentiment on the TIGIT class remains severely negative given multiple trial failures and discontinuations of Fc-competent TIGIT antagonists.
Market Dependencies
Significant CGEN upside or downside is tied to Arcus and Gilead’s earlier Ph 3 trials of their Fc-silent TIGIT in gastric and lung cancers.
Trial and Research Outcomes
Investors are expected to put little value in post-hoc analysis of which patients benefit most from COM701.

Compugen (CGEN) vs. SPDR S&P 500 ETF (SPY)

Compugen Business Overview & Revenue Model

Company DescriptionCompugen Ltd., a clinical-stage therapeutic discovery and development company, researches, develops, and commercializes therapeutic and product candidates in Israel, the United States, and Europe. The company's immuno-oncology pipeline consists of COM701, an anti-PVRIG antibody that is in Phase I clinical study used for the treatment of solid tumors; COM902, a therapeutic antibody targeting TIGIT, which is in Phase I clinical study in patients with advanced malignancies as a monotherapy; Bapotulimab, a therapeutic antibody targeting ILDR2 that is in Phase I clinical study in patients with solid tumors; and AZD2936, a novel anti-TIGIT/PD-1 bispecific antibody, which is in Phase I/II clinical study in patients with advanced or metastatic non-small cell lung cancer. Its therapeutic pipeline also includes early-stage immuno-oncology programs focused primarily on myeloid targets. The company has collaboration agreement with Bayer Pharma AG for the research, development, and commercialization of antibody-based therapeutics against the company's immune checkpoint regulators; Bristol-Myers Squibb to evaluate the safety and tolerability of COM701 in combination with Bristol-Myers Squibb's PD-1 immune checkpoint inhibitor Opdivo in patients with advanced solid tumors; and Johns Hopkins School of Medicine to evaluate novel T cell and myeloid checkpoint targets. It has license agreement with AstraZeneca for the development of bi-specific and multi-specific immuno-oncology antibody products; and research collaboration with Johns Hopkins University for myeloid. Compugen Ltd. was incorporated in 1993 and is headquartered in Holon, Israel.
How the Company Makes MoneyCompugen generates revenue through multiple streams, including licensing agreements, research collaborations, and potential milestone payments from its partners. The company typically partners with larger pharmaceutical companies to co-develop its drug candidates, which allows it to receive upfront payments and future royalties based on the sales of successfully commercialized products. Additionally, Compugen may earn revenue from grants and government funding for specific research projects. Significant partnerships with established biopharmaceutical firms enhance its financial stability and contribute to its earnings through shared research efforts and joint development initiatives.

Compugen Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: 0.68%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
Compugen's earnings call highlighted strong strategic partnerships, a robust cash position, and progress in clinical trials. However, significant revenue decline and increased net loss, coupled with rising competition in the ovarian cancer space, present challenges.
Q2-2025 Updates
Positive Updates
First Patient Dosed in COM701 Trial
Compugen dosed the first patient in their MAIA-ovarian trial for COM701, a potential first-in-class immune checkpoint inhibitor, targeting platinum-sensitive ovarian cancer.
Strong Cash Position
Compugen reported $93.9 million in cash, with an expected cash runway into 2027, supporting their clinical and early-stage pipeline advancements.
Partnerships with AstraZeneca and Gilead
Compugen has partnerships with AstraZeneca and Gilead, with potential milestone payments exceeding $1 billion and tiered royalties on future sales.
Broad Development Strategy for Rilvegostomig
AstraZeneca's rilvegostomig, derived from Compugen's COM902, is in multiple Phase III trials with a potential peak revenue target of over $5 billion.
Phase I Progress for GS-0321
The Phase I trial of GS-0321, an anti-IL-18 binding protein antibody licensed to Gilead, is progressing as planned.
Negative Updates
Revenue Decline
Compugen's revenues for Q2 2025 were $1.3 million, a significant decrease from $6.7 million in Q2 2024.
Increased Net Loss
The net loss for Q2 2025 was $7.3 million, compared to a net loss of $2.1 million in Q2 2024.
Increased Competition in Ovarian Cancer
There is increased competition in the platinum-resistant ovarian cancer space, which could impact the market for COM701.
Company Guidance
During the Compugen Ltd. Second Quarter 2025 Financial Results Conference Call, several key metrics and projections were discussed. Compugen reported a cash balance of approximately $93.9 million as of June 30, 2025, with a cash runway projected to fund operations into 2027. Revenues for the second quarter of 2025 were around $1.3 million, down from $6.7 million in the same period in 2024. R&D expenses decreased to approximately $5.6 million from $6.2 million in 2024, while G&A expenses remained steady at $2.2 million. The net loss for the second quarter of 2025 was reported at $7.3 million, or $0.08 per share, compared to a net loss of $2.1 million, or $0.02 per share, in 2024. The company is advancing its immuno-oncology pipeline, including COM701, with plans for interim analysis in the second half of 2026, and is eligible for milestone payments and royalties from partnerships with AstraZeneca and Gilead.

Compugen Financial Statement Overview

Summary
Compugen's financial statements reflect typical challenges of a biotechnology firm, with fluctuating revenue growth and ongoing profitability issues. Improved cash flow management in recent periods is a positive sign, but sustaining profitability and maintaining financial stability remain key risks.
Income Statement
50
Neutral
Compugen has shown fluctuating revenue growth, with a positive increase from 2021 to 2023 but a decline in 2024. The consistent negative net income and EBIT margins reflect ongoing challenges in profitability, typical in the biotechnology sector. Despite improvements in gross profit, the company's net profit margins remain negative, indicating operational inefficiencies.
Balance Sheet
55
Neutral
The balance sheet reveals a stable equity position but high volatility in debt levels. The debt-to-equity ratio remains low, suggesting manageable leverage. However, the declining equity ratio and fluctuations in stockholders' equity indicate potential risks in maintaining financial stability.
Cash Flow
60
Neutral
Cash flow analysis shows significant improvement in operating cash flow and free cash flow by 2024, highlighting better cash management. However, the company experienced negative free cash flow in previous years, raising concerns about long-term cash sustainability. The positive cash flow trend in 2024 is a promising sign of recovery.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.86M33.46M7.50M6.00M2.00M
Gross Profit19.93M31.45M6.53M5.32M1.94M
EBITDA-14.40M-12.52M-35.37M-34.61M-31.50M
Net Income-14.23M-18.75M-33.69M-32.87M-27.26M
Balance Sheet
Total Assets115.00M121.33M94.18M132.16M138.32M
Cash, Cash Equivalents and Short-Term Investments103.25M50.69M83.71M117.76M124.43M
Total Debt2.91M1.35M1.93M2.75M3.17M
Total Liabilities60.08M55.77M16.50M25.47M18.53M
Stockholders Equity54.91M65.56M77.68M106.69M119.78M
Cash Flow
Free Cash Flow49.49M-36.06M-34.99M-23.04M-28.49M
Operating Cash Flow49.60M-35.89M-34.51M-22.75M-28.32M
Investing Cash Flow-46.25M35.51M37.06M6.62M-82.17M
Financing Cash Flow554.00K3.08M353.00K16.84M108.46M

Compugen Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.47
Price Trends
50DMA
1.61
Negative
100DMA
1.51
Negative
200DMA
1.66
Negative
Market Momentum
MACD
-0.04
Negative
RSI
41.81
Neutral
STOCH
82.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGEN, the sentiment is Negative. The current price of 1.47 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.61, and below the 200-day MA of 1.66, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGEN.

Compugen Risk Analysis

Compugen disclosed 79 risk factors in its most recent earnings report. Compugen reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Compugen Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$129.46M-25.25%12.13%-8.23%
60
Neutral
HK$18.14B4.94-4.00%3.36%10.19%-23.62%
53
Neutral
$291.58M123.38%15.73%38.73%
52
Neutral
$564.95M-53.82%44.85%
51
Neutral
$137.46M87.50-35.66%-48.16%-97.37%
49
Neutral
$240.42M-99.23%-40.10%-16.60%
45
Neutral
$200.96M-75.99%7.59%-53.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CGEN
Compugen
1.47
-0.28
-16.00%
RGLS
Regulus
8.16
6.62
429.87%
PRQR
ProQR
1.91
-0.33
-14.73%
ADCT
ADC Therapeutics
2.94
0.09
3.16%
SLN
Silence Therapeutics
5.59
-10.67
-65.62%
SEER
Seer
2.20
0.54
32.53%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025