Exhibit 99.1
FOR IMMEDIATE RELEASE:
Compugen Reports Second Quarter 2022 Results
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Prioritized two indications, MSS-CRC and NSCLC, utilizing fully owned assets, COM701 and COM902
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Focus on MSS-CRC and NSCLC expected to provide highest probability of success and support future path to registration
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Focused development plan results in strategic decision to wind down Phase 1 cohort expansion studies resulting in the
conclusion of collaboration with Bristol Myers Squibb
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Most advanced preclinical program with first-in-class potential entering pre-IND enabling studies
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Extended cash runway expected to last through the end of 2024
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HOLON, ISRAEL, August 4, 2022 –– Compugen Ltd.
(Nasdaq: CGEN), a clinical-stage cancer immunotherapy company and a pioneer in computational target discovery, provided a corporate update and
announced financial results for the second quarter ended June 30, 2022.
Corporate Update
“Adapting to challenging market conditions, we have taken a strategic decision to focus on two prioritized indications, microsatellite
stable-colorectal cancer (MSS-CRC) and non-small cell lung cancer (NSCLC), and wind down our broad Phase 1 cohort expansion program resulting in the conclusion of our collaboration with Bristol Myers Squibb,” said Anat Cohen-Dayag, Ph.D.,
President, and Chief Executive Officer of Compugen. “I would like to thank Bristol Myers Squibb for our productive interactions and for their support in providing nivolumab and their anti-TIGIT, BMS-986207, enabling us to initiate the triple and
dual combination studies to evaluate our DNAM-1 axis hypothesis at a time when our own differentiated anti-TIGIT, COM902 had not yet reached the clinic. Additionally, my sincere thanks to the investigators, their staff, and the patients for
participating in these studies. This strategic decision allows us to extend our cash runway into the end of 2024, execute on our strong belief in COM701 and gives us the freedom to switch to and develop our own differentiated anti-TIGIT antibody,
COM902. Concluding the collaboration with Bristol Myers Squibb provides us with what is expected to be the greatest opportunity to advance and partner our clinical assets
and support a future path to registration.”
Dr. Cohen-Dayag continued, “Our clinical data from the COM701/nivolumab dose escalation and cohort expansion study in a small number of
MSS-CRC patients, show a modestly higher response rate compared to what has been reported for standard of care. We believe that this initial data, along with the translational package showing a COM701 driven mechanism, supports the evaluation of
COM701 triple combination in a single arm study. The full data from the COM701/nivolumab cohort expansion study in MSS-CRC and details of the new study design along with timelines is expected to be presented once finalized in the fourth quarter
of this year. The second indication we have prioritized is NSCLC in anti-PD-(L)1 treated patients. As an inflamed tumor type sensitive to PD-1 and possibly TIGIT checkpoints, NSCLC was selected as a tumor type with increased probability of
responding to our triplet combination. We also plan to evaluate the blockade of PVRIG and TIGIT in combination with standard of care in this indication, to build
an additional path to randomized studies. The design and timelines of the NSCLC program will be presented once finalized in the fourth quarter of this year. We believe focusing on these indications provides us with the highest probability of
success, and we plan to share the progress and initial findings from these studies during 2023.”
Dr. Cohen-Dayag added, “I am also extremely proud of
the progress we have made in our preclinical portfolio. Several early-stage programs from our computational discovery platform are advancing in our pipeline with the most advanced program about to enter pre-IND enabling studies with
first-in-class potential. We are very excited about this program, which is
targeting a soluble immune checkpoint upregulated in the tumor microenvironment in response to IFN-γ. We developed a very high affinity antibody, COM503, to block this soluble immune checkpoint pathway and we believe we are the first to do so. The antibody has demonstrated preclinical in-vitro and in-vivo activity as monotherapy and in combination with other checkpoint inhibitors across various models and systems. We intend to share details on this program in the fourth quarter of this year.”
Dr. Cohen-Dayag concluded, “With the decisive actions we have taken, we are being cash efficient and may be better positioned to bring
value to our stakeholders. I am excited with what we have achieved and look forward to continuing to focus on execution and delivering value to our shareholders and patients.”
Financial Results
As of June 30, 2022, cash, cash equivalents, short-term bank deposits and restricted cash totaled approximately $97 million, compared
with approximately $118 million as of December 31, 2021. As a result of the Company’s strategic decision to end its Phase 1 program early and focus on two prioritized indications, the Company expects its existing cash and cash related balances to be sufficient to fund its operating plan into the end of 2024, without taking
into consideration any cash inflows. Compugen does not have any debt.
R&D expenses for the second quarter ended June 30, 2022, were approximately $6.8 million, no change from the comparable period in
2021. Going into the second half of 2022, the reduction in R&D expenses is expected to be limited and will reflect winding down expenses of the current ongoing studies as well as preparation for the planned prioritized clinical studies. We
expect that the full effect of the reduction in expenses will be reflected in 2023.
General and administrative expenses for the second quarter ended June 30, 2022, were approximately $2.6 million compared with
approximately $2.7 million for the comparable period in 2021.
Cash balance at the end of 2022 is expected to be approximately $72-$74 million.
Net loss for the second quarter ended June 30, 2022, was approximately $9.1 million, or $0.11 per basic and diluted share, compared with
a net loss of approximately $9.5 million, or $0.11 per basic and diluted share, in the comparable period of 2021.
Full financial tables are included below
Conference call and webcast information
The Company will hold a conference call today, August 4,
2022, at 8:30 AM ET to review its second quarter 2022 results. To access the live conference call by telephone, please dial 1-866-744-5399 from the U.S., or +972-3-918-0644 internationally. The call will be available via live webcast through
Compugen’s website, located at the following link. Following the live
audio webcast, a replay will be available on the Company's website.
About Compugen
Compugen is a clinical-stage therapeutic discovery and development company utilizing its broadly applicable predictive computational discovery capabilities to identify new drug targets and biological pathways for developing cancer immunotherapies. Compugen has developed two proprietary product candidates: COM701, a potential first-in-class anti-PVRIG antibody and COM902, a
potential best-in-class monoclonal antibody targeting TIGIT for the treatment of solid tumors. Partnered programs include bapotulimab, an antibody targeting ILDR2, in Phase 1 development, licensed to Bayer under a research and discovery
collaboration and license agreement, and a TIGIT/PD-1 bispecific derived from COM902 (AZD2936) in Phase 1/2 development by AstraZeneca through a license agreement for the development of bispecific and multi-specific 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, including myeloid targets. Compugen is headquartered in Israel, with offices in South San Francisco, CA. Compugen’s shares are listed on Nasdaq and the Tel Aviv Stock Exchange under the ticker symbol CGEN.
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,
statements regarding our expectations that the conclusion of the collaboration with Bristol Myers Squibb provides Compugen with the greatest opportunity to
advance and partner its clinical assets and support a future path to registration; our belief that the initial clinical data from the COM701/nivolumab cohort
expansion study in a small number of MSS-CRC patients, along with the translational package showing a COM701 driven mechanism, supports further evaluation of
COM701 triple combination in a single arm study; statements regarding the increased probability of NSCLC to respond to our triplet combination; statements regarding our expectations that our focus on MSS-CRC and NSCLC indications is
expected to provide highest probability of success to support a future path to registration; statements regarding the potential of our most advanced preclinical program
to be first-in-class; our expectation that existing cash and cash related balances will be sufficient to fund our operating plan through the end of 2024; and our expectations regarding the timing for disclosure of the new studies design and data. 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: In the near term, Compugen is highly dependent on the success of COM701 and of COM902; 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. These risks and other risks are more fully discussed in the “Risk Factors”
section of Compugen’s most recent Annual Report on Form 20-F as filed with the Securities and Exchange Commission (SEC) as well as other documents that may be subsequently filed by Compugen from time to time with the SEC. In addition, any
forward-looking statements represent Compugen’s views only as of the date of this release and should not be relied upon as representing its views as of any subsequent date. Compugen does not assume any obligation to update any forward-looking
statements unless required by law.
Company contact:
Yvonne Naughton, Ph.D.
Yvonne Naughton, Ph.D.
Head of Investor Relations and Corporate Communications Compugen Ltd.
Email: ir@cgen.com
Tel: +1 (628) 241-0071
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COMPUGEN LTD.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(U.S. dollars in thousands, except for share and per share amounts)
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Three Months Ended
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Six Months Ended,
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June 30,
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June 30,
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2022
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2021
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2022
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2021
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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Operating expenses
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Research and development expenses
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6,812
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6,797
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13,982
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14,123
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Marketing and business development expenses
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255
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241
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478
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465
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General and administrative expenses
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2,570
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2,659
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5,173
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5,373
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Total operating expenses
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9,637
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9,697
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19,633
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19,961
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Financial and other income, net
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493
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200
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779
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559
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Loss before taxes on income
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(9,144
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)
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(9,497
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)
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(18,854
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)
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(19,402
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)
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Taxes on income
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-
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-
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-
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-
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Net loss
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(9,144
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)
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(9,497
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)
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(18,854
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)
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(19,402
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)
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Basic and diluted net loss per ordinary share
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(0.11
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)
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(0.11
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)
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(0.22
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)
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(0.23
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)
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Weighted average number of ordinary shares used in computing basic and diluted net loss per share
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86,518,714
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83,799,634
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86,486,612
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83,739,983
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COMPUGEN LTD.
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CONDENSED CONSOLIDATED BALANCE SHEETS DATA
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(U.S. dollars, in thousands)
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June 30,
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December 31,
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2022
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2021
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Unaudited
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ASSETS
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Current assets
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Cash, cash equivalents, short-term bank deposits and restricted cash
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97,288
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117,762
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Other accounts receivable and prepaid expenses
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4,696
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5,460
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Total current assets
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101,984
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123,222
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Non-current assets
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||||||||
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Long-term prepaid expenses
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1,906
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1,911
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Severance pay fund
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2,866
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3,125
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Operating lease right to use asset
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1,952
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2,247
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Property and equipment, net
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1,604
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1,658
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Total non-current assets
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8,328
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8,941
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Total assets
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110,312
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132,163
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LIABILITIES AND SHAREHOLDERS EQUITY
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Current liabilities
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Other accounts payable, accrued expenses and trade payables
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10,474
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12,699
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Current maturity of operating lease liability
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615
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768
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Short-term deferred participation in R&D expenses
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2,906
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3,629
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Total current liabilities
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13,995
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17,096
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Non-current liabilities
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Long-term deferred participation in R&D expenses
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1,051
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2,715
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Long-term operating lease liability
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1,491
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1,982
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Accrued severance pay
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3,394
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3,677
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Total non-current liabilities
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5,936
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8,374
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Total shareholders' equity
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90,381
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106,693
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Total liabilities and shareholders' equity
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110,312
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132,163
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