CGEN - Earnings call 4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for joining us today. Welcome to Compugen's Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions]. An audio webcast of this call is available in the Investors section of Compugen's website, www.cgen.com.

As a reminder, today's call is being recorded. to Communication. Naughton, like Relations of now Corporate and would introduce Head Yvonne Investor I go please Yvonne, ahead.

Yvonne Naughton

operator, for the joining you, us Thank and on call thank today. you all

Cohen-Dayag, prepared Joining will Sessa, Alberto join Scientific Q&A. and Officer; Miller, the are me Dr. for Michelle Financial Chief the us Dr. Medical from Dr. Officer; for Compugen Chief Anat Officer], Chief President [ and Eran and Executive Chief remarks Officer; Ofer,

We and Form the the that, to performance the you these to and filings recent the reflect accounting lines but uncertainties, company well we outlook, most that in refer report unknown The the call regarding current as call, Before potential we the during statements we statements discovery wish or forward-looking annual known turn obligation to plans, would I'll our including development undertakes company's programs, you anticipated position. company company's platform, assumptions, future. more details and the business Anat. statements and time that such for make you no to remind related results only achievements beliefs, risks may to caution update differ results, regarding company on begin, materially. like statements and the outcome, statements matters financial events, and subject of risks, actual forward-looking expectations and as are These on company's or the may and with SEC progress projections projections XX-F. in And to this future and cash for over our efforts

Anat Cohen-Dayag

our and call Yvonne, thanks for you, to today. joining Thank everyone

role and [ to Compugen great by new in both outside year leading and pharma our I for in oncologist accelerate with clinical his Michel], of quarter full in work Chief highlights, commitment executing for I'm on [ X, Compugen to to by opportunity an to transition companies major biotech partner [ the front would Officer who of ] want the value to clinical excellent fourth be leadership. this U.S. we the addition XXXX. an to Compugen team, Michelle training to the together welcoming has in creation. I development start in March opportunities Before management and excited is Maller], over welcome team a to thank of whole collaborator contributions creating Michel programs we on Medical took as discuss the the really to our the and take will extensive for experience the preclinical and a been Henry his to instrumental me of Henry and company us. from like and growth stage successful fit

Moving now of highlights the XXXX. to

in we last important for the role particular, in vision quarter, in into to and Our expected are the advance in us Compugen. exciting and and as well successes XXXX XXXX position play an future

and highlights payment of single-digit at Delighted to upfront total the a million double-digit for with including we of and the up preclinical a royalties COMXXX, milestone by to deal end which Gilead with for sales. Gilead development antibody near-term net protein. payment million $XX $XX a executed licensing deal we low the deal further computational testament to on additional $XXX program Firstly, of year, was future differentiation binding of value million lead IL-XX space The targeting and and also differentiated approach. antibody capabilities. It contactor to expected the development interest reflects our in a research is the I competitive, are potential our process which Phase validates the our IL-XX the significant discovery, of

protein using binding a an pathway biology and of IL-XX protein binding potential avoiding for treatment ], therefore, COMXXX novel As way potentially a by challenges first-in-class IL-XX presented the [ by [indiscernible]. harness a anti-IL-XX to cancer represents antibody antibody the against reminder

and ] in up significantly expected development our of with MSS colorectal by COMXXX the study microsatellite enrollment the ramped Secondly, true first execution our stage assets, of advancing completed enrollment cancer we clinical proof-of-concept and cancer. clinical differentiated We patients ongoing at with the [ study initiated metastatic the combination our we the of XX end stable of in enrollment quarter focusing CRC and studies ongoing on least of XXXX. platinum-resistant ovarian POC

association at combination. between the next clinical presented intended scientific including PVRLX our path In and for supporting evidence in we conferences COMXXX new throughout step benefit data to the addition, XXXX, guide preliminary biomarker, the development

the AstraZeneca, to of our the [indiscernible] the a partner, a us bispecific, fourth marketed and step of this Phase tract into first of potentially III III in Compugen development which one from Compugen biliary Dosing TIGIT their in component entitled patient COMXXX to trial closer PD-X quarter Phase digit cancer. payment brings milestone Thirdly, XXXX, in derived drug. is

of treatment future and realizing of broad asset and on across increases and of AstraZeneca's indications clinical milestone investigation combination lines across this royalties. various probability multiple payments

is segue expect planned update cash These by is end NSCLC to and advancing to our creation to into into and a capabilities accelerate and to from and from treat to portfolio. met to neurotherapy. Phase failed enhancing have in COMXXX cash potentially of and In us expected study, with early-stage sheet. received data we allow to expected cash we including what to upon our the value COMXXX, our in multiple and indications the our Compugen. IO expect deal IND us plan for me ovarian our balance we good expecting invest licensing particularly in move readouts data XXXX, XXXX ongoing with I to with an runway is move portfolio, catalyst-rich us solid challenging cancer. us XXXX, the XXXX. year are extend respond platinum-resistant Gilead historically milestone COMXX be XXXX a proof-of-concept diversified Finally, diversified cash share is XXXX received XXXX clearance enabling from combination of of development innovative AstraZeneca to and to from our to additional strategy, receive for by differentiated discovery This The COMXXX, the pipeline. This for our time a our from and

While a unique reach to previously these challenging of these activation, we encouraging indications. to biomarker data that The the substantiate strategy. in presented by indications of further we initial our clinical suggesting forward the clinical studies that represent bar, enables immune including anti-PD-X have very is PVRIG supported potentially biology believe goal high this biomarker with enable move to and findings results development activity our us

overall showed XX population, patients in stable COMXXX to the rate in has of treated combination an with XX% and in response liver of metastases, historically which first encouraging patients a other NSCLC, cohort with diseases Regarding responded nivolumab, with we not drugs. patient

is the population understand if additional ongoing the of first approximately objective in evaluated XXXX line we need. recruited which of half liver be significant our adding study, patient study proof-of-concept the evaluate conference. ongoing be XX% benefit there the treatment. The speed believe an for anti-TIGIT unmet is metastasis this a the at with medical patient a to combination of of presented aim the further at Data planned to the an and reflects XXXX to ongoing could from which combination fully study in the For the dual in represents population presentation

the the with treatment control treated available expect a duration rate, around cohort in rate, from hard-to-treat duration ADC data platinum-resistant who with translational can presented characteristics, from XX% X.X months or options. including single-agent around based progressed patients months, patients totality is of were achieved reporting a standard shrinking of which along all of responding reported response safety in excitement previously on rate favorable median We patients of patients, on some in response there high-grade of cancer, investigators see of to for You is safety, triple current patients with encouraging data. In response combination, for the the ovarian X and patients tumors data over XX with baseline to to was the over care. disease of had first is and X overall months. Responses considering these durable adenocarcinoma believe last response profile. the We in stabilization a serous also compared favorable chemotherapy is XX their

our delighted conference. of recruitment XXXX. Again, that at on this to cancer, expect complete of quarter For fourth are will we platinum-resistant active to the recruitment and quarter report our we patients and XX ovarian ongoing be the study least in medical are investigators in a plan to preference at present to present

overall For this baseline patients, data biomarker ongoing control to rate, disease characteristics and see rate, for study, response least preliminary you and duration responses at safety, of including data. can XX expect

together, And after feel execution value Phase shortly well priority. by we we COMXXX. COMXXX to Rapid I I for the confident Gilead us now Phase is that IND priority initiate design this Moving and development and IND greatly clearance on advanced We I both Phase with can trial and gain partnership were Gilead. intensified clearance. a on the on we're

We in the on IND with track following initiation half I are of for of XXXX Phase second point clearance. the IND subset submission study

data in hepatobiliary Finally, Phase nonsmall-cell Phase I/II ] of OTIMIZE-I trial the expects cancer. GEMINI XXXX, in II [ setting in AstraZeneca cancer from their half the in in second trial [ ] frontline in

deploy with We're one, advancing our clinical through core and programs, how while our to our Before that our COMXXX investing and development COMXXX and cash and continue our be of Compugen's the position capabilities. company. disciplined integration COMXXX to this want in to priorities: will combination solid discovery we of to our platform to two, its enhance stage include will and main upon advantage, over go financials, from study; Alberto clinical handing X drug and initiation resources, computational I with research benefiting innovative emphasize financially competitive we advance strategic

In correlation predictive of our data ahead showing employing enrichment additional us biology expected durable PARP terms studies will we to are and driven. COMXXX responses move data a be and biomarker ongoing believe combination, ], to In advancing strategy. allow biomarker [

populations, to cancer result a landscape, ineligible the for and is option believe we evolving nature in the over of the data on of and population. COMXXX ADCs standard for showing MSS-CRC, would treatment ovarian the be patient platinum-resistant We liver ADC. In many bar survival those the very due progressing combination opportunity advantage patient to see failures an in be the treatment nonresponsive high metastasis used encouraging. X the overall of those the care As

combination efficacy opportunity. generated September the COMXXX as 'XX. potentially our Our to data based indications, indications, encouraging of to to combination collaborate COMXXX patient steps. Based study enrolled a with large the in range And generating patients and and on partners only patients from of date, on determine still overall bring deliver the is to will is population, broad ongoing we in safety we data across metastasis, believe a there with across opportunity next MSS-CRC potential an the some

powering platform prediction our to computational skilled engine second competitive our groundbreaking the novel drug programs, on remains we in that, experienced the I advantage. to the non-diluted us to for turn highly continue believe, will immuno-oncology integrating core to development we We're early-stage enable finally, expertise the from execute enhance capabilities With to XXXX, computational And drug demonstrated generation to Investing and Alberto. progress of discovery focus targets. the cutting-edge For have can we main priority, next over computer on. in COMXXX. with we drug in candidates, invest discover and our research funding which novel will successfully call

Alberto Sessa

at cash receive milestone we date we plans into end balance which XXXX. runway front say the that COMXXX, of we securing our Anat. funding, operating upon our with XXXX This expect collaboration With was result advanced a Thank is to to in priority. and to non-dilutive cash our clearance to on extend of a expect IND solid XXXX, delighted support to accomplishments payment you, always into competent the I'm sheet.

Going into with cash will the details, I balance. our start

cash, The patient restricted AstraZeneca XXXX. COMXXX XXXX trial. XX, December for end payment As Phase with approximately XXXX, cash dosing at does receipt in of first preclinical III milestone upfront payments of and Gilead of the $XX.X include million the cash in approximately from on million from the December license $XX million cash not investments the balance $XX.X million our cash and of we as had compared equivalents, XX, $XX

from receive In addition, clearance. debt. subject from we Gilead company tax. Gilead, additional an no are would has I expect withholding milestone in to to upon The payments COMXXX remind XX% like million payment all to you XXXX, IND $XX that

[indiscernible] operating milestone of COMXXX our balance, together IND pipeline. be we planned reflects we will our payment on Based fund early clearance development our and continued investments understand The into clinical current XXXX. the plan and the are our As importance financially expect we upon cash our run sufficient the disciplined. current our that cash, plans, of Anat cash assets able with to in rate mentioned,

the revenues XXXX revenues approximately for comparable the and the XXXX, $XX XX, in of the XXXX. On portion AstraZeneca for upfront for license XX, December periods December license the amount revenues we compared to year quarter million from XXXX, year front, with the $X.X license in fourth ended the each the the in in million the the include the Gilead million. agreement with agreement to revenues payment and of for of clinical reported ended $XX.X The from of allocated milestones

and decrease moving period of Now the XX, the total is mainly XXXX count approximately the Research the and expenses XXXX, XX% following for by lower XXXX. XXXX XXXX compared million R&D to year with were compared the due increase in ended comparable operating amortization and of expenses to $XX.X in million respectively, for deferred fourth XXXX. quarter million, expenses and the as of in December the BMS, in million the $X.X agreement were head of The expenses $XX.X with expenses. $XX.X in expense. R&D offset XX% development return of to percentage in participation termination for

expenses the ended XXXX. for were and year in $XX.X million G&A for with compared $X.X comparable approximately of the period $X.X approximately million, respectively, $X.X fourth XXXX, and XX, million and for XXXX million Our quarter the December

net loss. on Finally,

Net year XX, we summarize. share with for period share diluted $XX.X share or $X.XX or and net will basic XXXX. profit or compared to With and per compared XXXX, diluted million of $X.X the of million $XX.X XXXX. the loss December comparable For period that, basic XXXX, of a share back per per comparable million million loss $X.X a diluted the net net $X.XX quarter to loss ended I was of or $X.XX and $X.XX Anat hand a and the in report per to diluted fourth basic in of of basic

Anat Cohen-Dayag

proof-of-concept of was Thanks, IBP and with the data execution Saverica], deal front To our immunology by predictive and Alberto. development license discovery XXXX validation IO biomarker III progress summarize, combination on program, [ a our successful with IL-XX partner the including year for for capabilities, the unique triple [indiscernible]. in preclinical very a Phase Compugen, and innovative X of ] [ of presentation both trial computation with the [ our Gilead exciting initiation ] and initiating preliminary studies our at

questions. over creation. and and the our our in all XXXX Operator? to colleagues for that, potentially success an would will catalyst for of runway clinical pipeline. as we reach to accelerate turn position cash here of which success in will like expected I Partnering remains extend to I development our into of strategy collaborating to patients to us accomplishments focus to medicines Our the XXXX to XXXX. the part passion call the important value well their reach drive to and believe XXXX, to assets thank commitment cash for with support and we'll XXXX and extended our continue early-stage on our and an dedication their With confidence first-in-class and in novel readiness

Operator

Instructions]. [Operator

The of first Goonewardene Truist. question from Ashtika is

Asthika Goonewardene

progress Congrats on been that made. all the have

you this, data want biomarker clarify some said missed will there this So is you to specifically this data, in to biomarker play looking I a I in Perhaps agreed, everyone presentation? can the data tie to I call just interesting sure that translational be that just that probably on know on seeing catalyst I'm forward I ASCO]. [ cancer around out assuming the which response? will if will that year colorectal I the have the see to data, how think for wanted could very company. we you be but have year, check you

Anat Cohen-Dayag

we we translational disclosed cohort. relate question. did And patients biomarker of to good share prior the biomarker data not very the I will you to see a it we want that in say did 'XX, remind prior it's We with not already the cohort with So XX where did CSC correlations correlation. in

par biomarker to that. is not anything next add I say it's to mention think that you you we'll that this report until Eran, If cohort, on in front? up correlation. did have to now, the anything want to that with cohort there will see fair the we But do

Eran Ophir

No.

all the both doing be And analyze the As will whatever lot a be shared. to by then and in correlation we're time fronts presentation pharmacodynamic to always, markers. will of relevant response efforts of

Asthika Goonewardene

Got you developing of are some preliminary it. will time And you But companion then potential next with I your can presentation, -- platinum-resistant year. know cancer later diagnostic? work. with steps biomarker presented ovarian be on will the the -- then this data the in maybe that plans terms a talk the of about what have At

Anat Cohen-Dayag

to it's have able that as already I have The the not of the we're said and last looking be to companion we be now cutoff that in be terms think testing samples ] a fair and to [ the is clinical we those SA that does while that diagnostic necessarily used aim optimizing we stage to It that new place, in we're the we trials. in we're an ] level at we're assay is say need -- use. set that time, tested can [ to itself ones. to a order assay in

So make looks we clear. be make the to state that companion diagnostics everything ready. select that as data eventually we'll is But to be to market patients we'll necessarily, see sure data we We'll make have select itself, that an be -- assay the Not patients assay that repeat we will a this will sure in used if just the correlation. in that the sure a good, clinical and if have will will used this goes well can trial. if

Operator

Daina Leerink. The next question from is Graybosch from

Daina Graybosch

it in enrollment much emphasizing this in that quarters. there. you than to like sounds have I the follow-up earnings strategy not have to more And call you're a my ear, Ashtika many biomarker

changed, leading or what strategy-wise, in So to data that change that's emphasis?

Anat Cohen-Dayag

know I in we path forward in I light I'll light we that first, how think, of least emphasize see of but at competitive say So landscape. data and the don't more, potential

I -- nivatuximab, time with the the an that with biomarker, edge. And ADCs landscape having will have ad. competitive we but allow may maybe will understand us all we designed, success, think of give over landscape place we competitive recognize into a study. go maybe ethane treatment how us biomarker is changing is that study an that additional biomarker believe gives also a well to a probability a higher We smaller that a and us

implying respect outcomes. we are still potential with we're end by anything anticipating you not quarter. data So complete as enrolling to of patients, enrollment And to know, the only the

think X eligible also that ADCs those target. I other it's that there look we for an where add and ADCs. that populations those to edge not to we can we have may biomarker, try also on competitive the that for may progressing than This to these see places looking understand are now that are And us populations. ourselves. I add at an where we X will are the on natural for also landscape is see we're looking to just

color that the So of focus would give on some maybe more this call.

Daina Graybosch

thinking And wrap Or then the COMXXX looking follow-up. that with strategy? companies say combinations? you you partner more can your talk that in novel you're maybe other up one other potentially about you combinations? heard novel in specific at I Are any to end

Anat Cohen-Dayag

alone the consideration, market. place, more we're because is kind took that with the that And intending a us, broadening patients priority. take we was that to to is we but limit able then also data we show -- there the is partnering -- for I all the to that the through small company, that collaborations always show on and indications biotech into really we these And with where to responded, do allows there we're and we our tolerability drugs. thinking a COMXXX broad is something look, of for and the doing what across that combinations. We're as durable were think X for broaden about that how treat types recognize indications, that is what data can obviously, today, which we responses opportunities fact only have we COMXXX to a not COMXXX that of in think, good that's and/or program thinking not the I internally, to are how opportunities

will of things So let maybe the that's add to you on to safety it. strategy about mechanism mechanism action, and relate want more the potential based few Eran a Eran, [indiscernible] toll of it. profile. I this combination action

Eran Ophir

Yes.

piverogene So we've ] then to shown tumors extensive conciticize that PD-X. [ with [indiscernible] unique the checkpoint TIGIT and quite block in did

combined and the action the I [ approach combination this we of we share we'll IO, relatively reliability cells testing, combine this is pursuing. mature, hope safe It PVRIG also very could of ] of which that right, lines an good aspects mean see in what chemotherapies, many be safe, earlier is regardless So is combination, could tumor, believe extremely the later triplet a But relevant with out pure in course, profile triplet this this signals other to T and it year. of we therapy. the into and we're combination, mechanism in could there. are potential the be of providing combined also and could drive be

Operator

is from Stephen The question of Stifel. Willey next

Stephen Willey

something pursuing are the data And different tends rate historical lot this in and that here to between that that, kind then, population. obviously that asked that maybe lot a has efficacy Or metrics. become And bit efficacy crowded? look biomarker can may the disconnect to, the a of opportunity? to exist there's a at can development the the to you but using But I know I as speak colorectal IO-based a it kind strategy. speak tumor. there's of mentioned the event-driven think landscape because of to the be guess, you're on is regimens question I do I trial a think I interest you about you guess, the response Is potential met have going a you bit call, non-liver guess that of to to just I little decision. out that data of you make talk

Anat Cohen-Dayag

standard we also we've already hard us data fair within agents and population. on liver there targeting with was So population how treat -- for really, judge I we the that think would when a met what that look what really that to overall us, that our to have based an to look relevant data, in of that standard it, of data where because disclosed me looking say I point fair when at and And we at this that the but will intriguing but will have think data no that -- let believe our mass, data is relate -- on -- I at benchmarks but be patient liver you the also other we're really that there we the this trials would it's the I based that the very that will are were respect it's is share seeing close a a we on raised think think ad. really Really, in patient based would population, care, clinical we that to front we it's what the are population. take

about we to look data So our ] I'll at [ speak may let as Michel benchmarks. compared how

Unknown Executive

you. Thank Great. the for Thanks question.

the that think a quite data we and point, made good think similarly. I very you about

that there's studies, out So once the sustained think of disease also survival. are related in often they're to these concept. clinical know, And populations, a to a as often times, seen responders, end And stable stage ignore we as I in are points registration on reporting trials, and we proof it's survival overall drugs cannot overall progression-free overall whether these in response test look early a response a rate. mind survival. But endpoint of target lot the go for you III hard-to-treat way primary rates to as Phase other a of endpoints overall keeping no primary many longer that at

the we terms we interpret in small, keep to when studies, point. end our have data in look single-arm the with that also but picture sets mind are of have studies, knowing registration endpoints what have, So are single-arm limitations that survival to we big at the we

responses And data. think that to rate the I the becomes ignore it's and patients at in of relevant so sustained disease, the important not where that's stable control disease looking have

totality that, will the also decisions look with I if elaborate make go/no-go with at So be will the think will happy have look landscape survival eye benchmarks we at we you be it able the to is and to additional these evolving. the as an towards of questions. what to And data

Stephen Willey

guess patients specifically I maybe [indiscernible]. more I of the have you probably interest in any these just looking And in granular at handful non-libermat only the know represented population detail? a

Anat Cohen-Dayag

I that is So liver most without the patients clarify want to about that you're talking targeted to just population. because data patient metastases actually the difficult-to-treat

liver in was previously of the data had presented, So the XX% that patient population metastases.

Stephen Willey

[ are a variety now regimens There's subgroup by [ of IO-based patients ] with that being obviously nonlibermab of pursued a of companies a ]. number various

Anat Cohen-Dayag

Okay.

our we're not add for an think that data is ] patients at remains Yes, what presented still fact -- all. Steve, just area a of of the with and we [indiscernible], focus LiveMe there [ we've that in it recognize us. what seeing given just I for lot there So I'll

maybe data taking to relating at median We're is and consideration cetera. and think overall survival, by [ survival some there not of X.X overall of met is will there et an months, into this response look at I ] rate liver overall we all that for all population, same the of of met. that met], the we more terms our XX% of the do rate. We most patient that -- in this are treatment liver [ in representation are line the of expect than in patients having have the liver enrolling response we population of our

have think this take a we do careful So because we look and same that representation that will have patient we the at there. edge population expect an in we we this may

Stephen Willey

that there's [indiscernible] bispecific domain? antibodies know the to just then fairly I on some on that incorporating silent question I can exclusive specific just a scarcity just confidence with guess And value guess mean, the you asked optionality made a the are lotto COMXXX? strong I around you probably just in digit. I I of Or that. because us, Okay. just is partnering use remind the front, And Astra obviously, Gilead

Anat Cohen-Dayag

latter, the latter. totally, So the

the right So COMXXX has their the AstraZeneca segment bispecifics. use in to

the We got they So rights our based COMXXX. bispecific to own on COMXXX. develop

have We for sudden right bispecifics also kept in. an we interest that ourselves

be for So we saying is example, asset. It's as say to FDA there that matter nice relate do matters, matter that that partnering see noted happy our believe not to COMXXX were should which our an it are ] own that opportunities. not We with does you COMXXX if we these or is it the [ COMXXX. that TTP that we We to the it data a PVRIG question, it. you always either good TIGIT variant now supporting do totally then silent and always or -- And mentioned we're COMXXX -- one.

own things to think that plans internally, a edge. move to manner, hard-to-treat with patient be that a one I manner. data-driven in mentioned. opportunities partners, population key -- in it COMXXX because for our of assets But will with We we And can should the an generate but COMXXX, that gives today proceed can us in believe the assets biology-driven combination broadly we I collaboration that obviously, are that in as do answered ahead test have We think tested intend these most us. And we them. these drug we

air that that out clear think this to studies, and a great in at there based PVRIG. is And I we that single-arm have have understand it type data adding a a opportunities. And that we the partnering inflamed You data there field that that TIGIT start this that will and are is benefit third word ignore on COMXXX there is component in assets companies PD-X TIGIT there data that and that can serve that needed, needed. the there effect, it as a in will tumor to opportunity test us and is is cannot the say by be component a that that one is believe good is supporting we for driven third least the TIGIT we it's the hopefully, but that to that believe the and allow by the could these have out potential to leading

we think how about that's front, partnering on yes, it. So

Operator

the participation. you and concludes This Investor for session your Compugen's Call. Q&A Conference Thank

ahead and disconnect. You may go

Compugen (CGEN) 5 Mar 242023 Q4 Earnings call transcript