Currency Impact - The appreciation (devaluation) of the dollar against the NIS was 0.6%, 3.1%, and 13.2% in 2024, 2023, and 2022, respectively [436]. - Assuming a 10% devaluation of the dollar against the NIS, the company would experience an increase in net loss of approximately $1.5 million [436]. Revenue Recognition - The company recognized revenues of $2 million, $6 million, $7.5 million, $10 million, and $5 million in connection with milestones achieved from a license agreement with AstraZeneca for the years 2020, 2021, 2022, 2023, and 2024, respectively [449]. - During the year ended December 31, 2024, the company recognized $22,864 of license, IND services, and Phase 1 services revenues [455]. - Deferred revenues included $9,632 in current liabilities and $34,045 in non-current liabilities [455]. - The company determined that the license granted was a functional license and recognized the entirety of the initial transaction price allocated to the license performance obligation during the year ended December 31, 2023, in the amount of $23.5 million [453]. Share-Based Compensation - Share-based compensation expense recognized under ASC 718 was approximately $3.0 million, $3.6 million, and $4.3 million for the years ended December 31, 2024, 2023, and 2022, respectively [445]. Research and Development Expenses - There was no amortization of participation in research and development expenses for the year ended December 31, 2024, while for the years 2023 and 2022 such expenses were approximately $0.3 million and $6.0 million, respectively [459]. Market Trends - Biologics represented 31% of FDA approved drugs in 2023 and 32% in 2024, indicating a growing market segment [438]. Financial Risks - The company is subject to interest rate risk, which could impact financial income and net loss due to volatility in interest rates [437].

[Executive Summary & Corporate Update](index=1&type=section&id=Executive%20Summary%20%26%20Corporate%20Update) Compugen achieved significant 2024 progress, positioning for 2025 growth with a diverse pipeline, positive clinical data, and strong financial outlook [CEO Commentary & Strategic Highlights](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Highlights) Compugen's CEO highlights significant 2024 progress, positioning for 2025 growth with a diverse pipeline, key advancements, and continued AI/ML platform acceleration - Compugen is **well-positioned for growth**, building on **significant progress in 2024** with a **diverse and innovative pipeline** and a **strong focus on execution in 2025**[3](index=3&type=chunk) - Clinical data supports advancing **COM701** as a potential **first-in-class anti-PVRIG** for maintenance treatment in platinum-sensitive ovarian cancer, with an adaptive platform trial scheduled for **Q2 2025**[3](index=3&type=chunk) - AstraZeneca presented promising **rilvegostomig data** in 2024, expanded to **seven Phase 3 trials**, and plans to share early data for rilvegostomig in combination with ADCs in **2025**, representing a **significant potential revenue source** through milestone payments and **mid-single digit tiered royalties**[3](index=3&type=chunk) - A **solid financial position** with **cash runway into 2027** supports advancing the clinical and early-stage pipeline, including GS-0321 (licensed to Gilead) for which a **$30 million IND clearance milestone** was received in 2024, with the Unigen™ AI/ML platform continuing to accelerate research[4](index=4&type=chunk) [Key Corporate Highlights](index=1&type=section&id=Key%20Corporate%20Highlights) The company achieved several key milestones in Q4 and full year 2024, including positive clinical data for COM701, initiation of the first-in-human Phase 1 trial for GS-0321, expansion of AstraZeneca's rilvegostomig program, and maintaining a strong financial position with cash runway into 2027 - Clinical data presented at **SITC 2024** supports further development of **COM701**, a potential **first-in-class anti-PVRIG antibody**[5](index=5&type=chunk) - On track to initiate a randomized adaptive platform trial of **COM701 maintenance therapy** in patients with platinum-sensitive ovarian cancer, scheduled to start in **Q2 2025**[5](index=5&type=chunk) - The first patient was dosed in **Q1 2025** in the first-in-human Phase 1 solid tumor trial of **GS-0321** (previously COM503), a potential **first-in-class anti-IL18BP antibody** licensed to Gilead[5](index=5&type=chunk) - Partner AstraZeneca reported promising **rilvegostomig data** in 2024, expanded the program to **seven Phase 3 trials**, and plans to share early data for rilvegostomig in combination with ADCs in **2025**[5](index=5&type=chunk) - **Solid financial position** with **cash runway expected to fund operations into 2027**[5](index=5&type=chunk) [Financial Performance Highlights](index=2&type=section&id=Financial%20Performance%20Highlights) This section details Compugen's 2024 financial performance, covering cash, revenue, costs, operating expenses, and net income/loss [Cash Position & Runway](index=2&type=section&id=Cash%20Position%20%26%20Runway) As of December 31, 2024, Compugen held approximately $103.3 million in cash and equivalents, including significant milestone payments from Gilead and AstraZeneca, and expects its current cash to fund operations into 2027 with no debt Cash, Cash Equivalents, Short-term Bank Deposits and Investment in Marketable Securities (in millions) | As of December 31, 2024 | | :---------------------- | | 103.3 | - Cash balance includes **$60 million upfront payment** and **$30 million IND milestone payment** from Gilead, and **$15 million milestone payments** from AstraZeneca[6](index=6&type=chunk) - In January and February 2025, approximately **3.96 million shares** were sold through the ATM facility, contributing net proceeds of approximately **$8.87 million**[7](index=7&type=chunk) - Compugen expects its current cash to be sufficient to fund operating plans into **2027** and has no debt[8](index=8&type=chunk) [Revenue & Cost of Revenue Analysis](index=2&type=section&id=Revenue%20%26%20Cost%20of%20Revenue%20Analysis) Revenues for Q4 and full year 2024 significantly decreased compared to 2023, primarily due to the timing of milestone payments, while cost of revenues also decreased due to reclassification and a royalty reversal Revenues (in millions) | Period | 2024 | 2023 | | :-------- | :---- | :---- | | Q4 | $1.5 | $33.5 | | Full Year | $27.9 | $33.5 | - 2024 revenues include portions of upfront and IND milestone payments from Gilead and a **$5 million clinical milestone** from AstraZeneca, while 2023 revenues reflect a portion of Gilead's upfront payment and a **$10 million clinical milestone** from AstraZeneca[9](index=9&type=chunk) Cost of Revenues (in millions) | Period | 2024 | 2023 | | :-------- | :--- | :--- | | Q4 | $0.7 | $2.0 | | Full Year | $7.9 | $2.0 | - Cost of revenues in 2024 includes IND and Phase 1 activities and royalty payments, offset by a royalty reversal due to an exemption from the Israeli Innovation Authority for IL-18BP related income[10](index=10&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Research and Development (R&D) expenses decreased in 2024 due to reclassification and lower activities, partially offset by increased clinical expenses, while General and Administrative (G&A) expenses remained relatively stable Research and Development (R&D) Expenses (in millions) | Period | 2024 | 2023 | | :-------- | :---- | :---- | | Q4 | $5.9 | $10.9 | | Full Year | $24.8 | $34.5 | - The decrease in R&D expenses in 2024 was mainly due to the classification of GS-0321 expenses to cost of revenues and lower CMC and IND enabling activities for GS-0321, partially offset by an increase in clinical expenses[11](index=11&type=chunk) General and Administrative (G&A) Expenses (in millions) | Period | 2024 | 2023 | | :-------- | :--- | :--- | | Q4 | $2.2 | $2.5 | | Full Year | $9.4 | $9.7 | [Net Income/Loss & EPS](index=2&type=section&id=Net%20Income%2FLoss%20%26%20EPS) Compugen reported a net loss of $6.1 million for Q4 2024, a shift from a net income of $9.7 million in Q4 2023, with the full year 2024 net loss improving to $14.2 million from $18.8 million in 2023 Net Income (Loss) and Basic & Diluted EPS | Metric | Q4 2024 | FY 2024 | Q4 2023 | FY 2023 | | :------------------------------ | :------ | :------ | :------ | :------ | | Net Income (Loss) (in millions) | $(6.1) | $(14.2) | $9.7 | $(18.8) | | Basic and Diluted EPS (cents) | $(0.07) | $(0.16) | $0.11 | $(0.21) | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents Compugen's condensed consolidated statements of operations and balance sheets for the specified periods [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations provide a detailed breakdown of Compugen's financial performance for the three months and full year ended December 31, 2024, compared to the same periods in 2023, covering revenues, costs, operating expenses, and net profit/loss COMPUGEN LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except for share and per share amounts) | | Three Months Ended | | Year Ended, | | | :---------------------------------------------------------------- | :----------------- | :--- | :----------- | :--- | | | December 31, | | December 31, | | | | 2024 | 2023 | 2024 | 2023 | | | Unaudited | Unaudited | | | | Revenues | 1,471 | 33,459 | 27,864 | 33,459 | | Cost of revenues | 675 | 2,004 | 7,930 | 2,004 | | Gross profit | 796 | 31,455 | 19,934 | 31,455 | | Operating expenses | | | | | | Research and development expenses | 5,911 | 10,928 | 24,810 | 34,472 | | Marketing and business development expenses | 167 | 61 | 576 | 244 | | General and administrative expenses | 2,201 | 2,482 | 9,439 | 9,731 | | Total operating expenses | 8,279 | 13,471 | 34,825 | 44,447 | | Operating profit (loss) | (7,483) | 17,984 | (14,891) | (12,992) | | Financial and other income, net | 1,370 | 735 | 5,182 | 3,208 | | Profit (loss) before taxes on income | (6,113) | 18,719 | (9,709) | (9,784) | | Tax expense | 4 | 9,006 | 4,522 | 8,970 | | Net profit (loss) | (6,117) | 9,713 | (14,231) | (18,754) | | Basic and diluted net earnings (loss) per ordinary share | (0.07) | 0.11 | (0.16) | (0.21) | | Weighted average number of ordinary shares used in computing basic | | | | | | and diluted net earnings (loss) per share | 89,538,891 | 88,415,382 | 89,528,031 | 87,633,298 | [Condensed Consolidated Balance Sheets Data](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20Data) The condensed consolidated balance sheets data presents Compugen's financial position as of December 31, 2024, and 2023, detailing assets (current and non-current), liabilities (current and non-current), and total shareholders' equity COMPUGEN LTD. CONDENSED CONSOLIDATED BALANCE SHEETS DATA (U.S. dollars, in thousands) | | December | December | | :---------------------------------------- | :------- | :------- | | | 31, | 31, | | | 2024 | 2023 | | ASSETS | | | | Current assets | | | | Cash and cash equivalents | 18,229 | 13,890 | | Restricted cash | - | 365 | | Short-term bank deposits | 61,397 | 25,053 | | Investment in marketable securities | 23,629 | 11,742 | | Trade receivables | - | 61,000 | | Other accounts receivable and prepaid expenses | 2,742 | 2,529 | | Total current assets | 105,997 | 114,579 | | Non-current assets | | | | Restricted long-term bank deposit | 343 | - | | Long-term prepaid expenses | 1,888 | 1,233 | | Severance pay fund | 3,072 | 2,977 | | Operating lease right to use asset | 2,843 | 1,329 | | Property and equipment, net | 852 | 1,216 | | Total non-current assets | 8,998 | 6,755 | | Total assets | 114,995 | 121,334 | | LIABILITIES AND SHAREHOLDERS EQUITY | | | | Current liabilities | | | | Other accounts payable, accrued expenses and trade payables | 10,080 | 14,485 | | Short-term deferred revenues | 9,632 | 11,149 | | Current maturity of operating lease liability | 448 | 632 | | Total current liabilities | 20,160 | 26,266 | | Non-current liabilities | | | | Long-term deferred revenues | 34,045 | 25,392 | | Long-term operating lease liability | 2,464 | 719 | | Accrued severance pay | 3,412 | 3,398 | | Total non-current liabilities | 39,921 | 29,509 | | Total shareholders' equity | 54,914 | 65,559 | | Total liabilities and shareholders' equity | 114,995 | 121,334 | [Company Information & Outlook](index=2&type=section&id=Company%20Information%20%26%20Outlook) This section outlines Compugen's future milestones, company overview, and important forward-looking statements [Next Planned Milestones](index=2&type=section&id=Next%20Planned%20Milestones) Compugen has outlined several key upcoming milestones, including the initiation of a randomized adaptive platform trial for COM701 in Q2 2025, AstraZeneca's plan to share early data for rilvegostomig in combination with ADCs in 2025, and projected interim analysis data for single agent COM701 in H2 2026 - **Q2 2025**: Initiation of a randomized adaptive platform trial comparing **COM701 maintenance therapy** to placebo in **60 patients** with relapsed platinum-sensitive ovarian cancer[14](index=14&type=chunk) - **2025**: Compugen's partner, AstraZeneca, plans to share early data for **rilvegostomig** in combination with their ADCs[14](index=14&type=chunk) - **H2 2026**: Data from projected interim analysis of single agent **COM701 sub-trial 1** as maintenance therapy in relapsed platinum-sensitive ovarian cancer[14](index=14&type=chunk) [About Compugen](index=3&type=section&id=About%20Compugen) Compugen is a clinical-stage therapeutic discovery and development company that utilizes its predictive computational discovery platform (Unigen™) to identify novel drug targets for cancer immunotherapies, with a pipeline including proprietary and partnered programs - Compugen is a **clinical-stage therapeutic discovery and development company** focused on cancer immunotherapies[16](index=16&type=chunk) - The company leverages its broadly applicable predictive computational discovery platform (**Unigen™**) to identify new drug targets and biological pathways[16](index=16&type=chunk) - Proprietary product candidates in Phase 1 development include **COM701** (anti-PVRIG antibody) and **COM902** (anti-TIGIT antibody)[16](index=16&type=chunk) - Partnered programs include **Rilvegostomig** (PD-1/TIGIT bispecific antibody, AstraZeneca, Phase 3) and **GS-0321** (anti-IL-18 binding protein antibody, Gilead, Phase 1)[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement, highlighting that the press release contains forward-looking statements based on current beliefs and expectations, outlining various known and unknown risks and uncertainties that could cause actual results to differ materially - The press release contains **forward-looking statements** based on current beliefs, expectations, and assumptions, identifiable by terms like 'will,' 'expects,' 'potential,' and 'intends'[17](index=17&type=chunk) - These statements involve **known and unknown risks and uncertainties** that may cause actual results to differ materially, including clinical trial failures, dependence on collaboration agreements, and the unproven nature of the computational target discovery infrastructure[17](index=17&type=chunk) - Risks are more fully discussed in Compugen's most recent Annual Report on Form 20-F filed with the SEC[17](index=17&type=chunk)

Core Viewpoint - Compugen Ltd. is positioned for growth in 2025, supported by a diverse pipeline and significant clinical advancements made in 2024, particularly with COM701 and partnerships with AstraZeneca and Gilead [2][3]. Financial Highlights - As of December 31, 2024, Compugen reported approximately $103.3 million in cash and equivalents, including a $60 million upfront payment from Gilead and milestone payments from AstraZeneca [5][8]. - Revenues for Q4 2024 were approximately $1.5 million, with total revenues for the year at $27.9 million, a decrease from $33.5 million in 2023 [9]. - The company reported a net loss of approximately $6.1 million for Q4 2024 and a net loss of approximately $14.2 million for the full year, compared to a net income of $9.7 million in Q4 2023 [13]. Clinical Developments - Compugen is on track to initiate a randomized adaptive platform trial for COM701 in Q2 2025, targeting maintenance therapy for patients with platinum-sensitive ovarian cancer [6][7]. - The first patient was dosed in Q1 2025 for the Phase 1 trial of GS-0321, a potential first-in-class anti-IL18BP antibody licensed to Gilead [6]. - AstraZeneca is conducting seven Phase 3 trials for rilvegostomig, a bispecific antibody derived from Compugen's COM902, with early data expected in 2025 [2][6]. Research and Development - R&D expenses for 2024 decreased to approximately $24.8 million from $34.5 million in 2023, primarily due to reclassification of expenses related to GS-0321 [11]. - The company continues to leverage its AI/ML-powered predictive computational discovery platform, UnigenTM, to support its early pipeline [3]. Future Milestones - Key upcoming milestones include the initiation of the COM701 trial in Q2 2025 and the expected data release from AstraZeneca regarding rilvegostomig in 2025 [7].

Core Insights - Compugen Ltd. is a clinical-stage cancer immunotherapy company that specializes in computational target discovery [1][3] - The company will participate in a fireside chat at the Leerink Partners Global Healthcare Conference on March 11, 2025 [1][2] Company Overview - Compugen utilizes its predictive computational discovery platform, Unigen™, to identify new drug targets and biological pathways for cancer immunotherapies [3] - The company has two proprietary product candidates in Phase 1 development: COM701, an anti-PVRIG antibody, and COM902, an antibody targeting TIGIT for solid tumors [3] - Rilvegostomig, a PD-1/TIGIT bispecific antibody, is in Phase 3 development by AstraZeneca under a licensing agreement [3] - GS-0321, a high affinity anti-IL-18 binding protein antibody, is also in Phase 1 development and licensed to Gilead [3] - Compugen's therapeutic pipeline includes early-stage immuno-oncology programs aimed at enhancing anti-cancer immunity [3] - The company is headquartered in Israel with additional offices in San Francisco, CA, and its shares are listed on Nasdaq and the Tel Aviv Stock Exchange under the ticker symbol CGEN [3]

Core Insights - Compugen Ltd. announced a collaboration with Ultima Genomics to enhance its gene sequencing database through the integration of AI/ML powered predictive computational discovery platform, Unigen, and high throughput single cell sequencing technology [1][2] - The collaboration aims to uncover new insights into gene structure for immuno-oncology, with findings presented at the AGBT conference [2][3] - Compugen plans to leverage Ultima's technology to develop proprietary single cell atlases for accelerated discovery of new immunotherapies [2] Group 1: Collaboration and Technology - Compugen's Chief Scientific Officer highlighted the development of algorithms to study gene splicing at single cell resolution, analyzing patient tumor samples to identify potential regulatory mechanisms in immuno-oncology [2] - Ultima Genomics' UG 100 sequencing platform is designed to provide lower cost sequencing and more omics data, facilitating new applications and insights in cancer research [2][6] - The collaboration is expected to transform data-starved applications in immuno-oncology through large-scale data and AI/ML techniques [2] Group 2: Research Findings - A poster presented at the AGBT 2025 meeting detailed the use of 3' single cell sequencing to study patient-derived tumor cells, revealing enhanced potential to study differential splicing at the cell type level [3] - Comparative analysis using tumor samples showed high consistency in single-cell expression levels across Ultima's UG 100 and Illumina's Novaseq 6000 sequencing platforms, with UG 100 providing clearer demarcation of 3' mRNA transcript ends [6] - The gene structure information identified through this approach contributes to the predictive models of Unigen, enhancing the understanding of tumor biology and immune regulation [5][6] Group 3: Company Overview - Compugen is a clinical-stage therapeutic discovery and development company focused on identifying new drug targets and biological pathways for cancer immunotherapies [8] - The company has two proprietary product candidates in Phase 1 development and a bispecific antibody in Phase 3 development through a collaboration with AstraZeneca [8] - Compugen's Unigen platform integrates various biological data, including multi-omics and single-cell RNA sequencing, to discover novel drug targets and understand complex biology [7]

Core Viewpoint - Compugen Ltd. is set to release its fourth quarter and full year 2024 financial results on March 4, 2025, before U.S. markets open, followed by a conference call for a corporate update [1]. Company Overview - Compugen is a clinical-stage cancer immunotherapy company that utilizes its predictive computational discovery platform, Unigen™, to identify new drug targets and biological pathways for cancer treatment [3]. - The company has two proprietary product candidates in Phase 1 development: COM701, an anti-PVRIG antibody, and COM902, an antibody targeting TIGIT for solid tumors [3]. - Rilvegostomig, a PD-1/TIGIT bispecific antibody, is in Phase 3 development by AstraZeneca under a licensing agreement [3]. - GS-0321, a high affinity anti-IL-18 binding protein antibody, is also in Phase 1 development and licensed to Gilead [3]. - Compugen's therapeutic pipeline includes early-stage immuno-oncology programs addressing various immune resistance mechanisms [3]. - The company is headquartered in Israel with offices in San Francisco, CA, and its shares are listed on Nasdaq and the Tel Aviv Stock Exchange under the ticker symbol CGEN [3].

Group 1 - Compugen is an under-the-radar player in the biotech industry, focusing on computationally driven drug discovery [1] - The company targets less-known immune pathways such as PVRIG and IL-18 binding protein, differentiating itself from big pharma's focus on familiar checkpoint inhibitors [1] - Compugen is positioned in a sector poised for exponential expansion, indicating potential for high growth [1]

Core Viewpoint - Compugen Ltd. has initiated a Phase 1 clinical trial for COM503, a potential first-in-class antibody targeting IL-18 binding protein, licensed to Gilead, marking a significant advancement in cancer immunotherapy [1][7]. Group 1: Clinical Trial Details - The Phase 1 trial is a multi-center dose escalation and expansion study aimed at evaluating the safety, tolerability, and pharmacokinetics of COM503 both as a monotherapy and in combination with Gilead's anti-PD1 antibody, zimberelimab, in patients with advanced solid tumors [2][4]. - The trial commenced in the fourth quarter of 2024 as planned, with the primary objectives including assessing safety and identifying the maximum tolerated dose [4]. Group 2: Mechanism of Action - COM503 is designed to block the endogenous IL-18 binding protein, which inhibits the anti-tumor activity of IL-18, thereby potentially enhancing local immune responses against tumors [3][5]. - The unique mechanism of action of COM503 offers a novel treatment option for cancer patients, as noted by clinical researchers involved in the trial [3]. Group 3: Licensing Agreement and Financials - In December 2023, Compugen and Gilead entered into a licensing agreement granting Gilead exclusive rights to develop and commercialize anti-IL-18 binding protein antibodies, including COM503 [5]. - Compugen received an upfront payment of $60 million and an additional $30 million upon IND clearance, with potential future milestone payments totaling up to $758 million, leading to a total deal value of up to $848 million [5]. Group 4: Company Overview - Compugen is a clinical-stage therapeutic discovery and development company utilizing its predictive computational discovery platform, Unigen™, to identify new drug targets for cancer immunotherapies [6][8]. - The company has two other proprietary product candidates in Phase 1 development, COM701 and COM902, targeting different mechanisms in solid tumors [6].

Broad method of use patent protection for COM902, a potential best-in-class reduced Fc, clinical stage, anti-TIGIT antibody, in triple combination with any anti-PD-1 antibody and any anti-PVRIG antibody for the treatment of cancer Further strengthens Compugen's IP portfolio across DNAM-1 axis checkpoint inhibitors HOLON, Israel, Nov. 27, 2024 /PRNewswire/ -- Compugen Ltd. (Nasdaq: CGEN) (TASE: CGEN) a clinicalstage cancer immunotherapy company and a pioneer in computational target discovery, today announced ...

Start Time: 08:30 January 1, 0000 9:30 AM ET Compugen Ltd. (NASDAQ:CGEN) Q3 2024 Earnings Call November 12, 2024, 08:30 AM ET Company Participants Anat Cohen-Dayag - President and CEO David Silberman - CFO Michelle Mahler - Chief Medical Officer Eran Ophir - Chief Scientific Officer Oladapo Yeku - Assistant Professor of Medicine, Harvard Medical School, and Director of Translational Research, Gynecologic Oncology Program Yvonne Naughton - Head of IR and Corporate Communications Conference Call Participants ...