Compugen (CGEN) 15 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for joining us today. Welcome to Compugen’s First Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. 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 Communications. Naughton, like Relations of now Corporate and would introduce, Head Yvonne Investor I go please Yvonne, ahead.

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

Cohen-Dayag, prepared Joining and Sessa, Alberto Drug President us Dr. Officer. Chief join are me Eran for Adewoye, Financial Chief for the Discovery Henry Officer; for Dr. Officer; will Compugen Chief Anat the Research Medical President Dr. and Ophir, and Executive Vice remarks Q&A. and Senior

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

over call turn I’ll now, to Anat. the And

before right first cancer XXXX a and we At a Compugen, clinical need immunotherapy of is are good tested that to lives in Thank evaluating you, afternoon, and update. a with space, everyone, transform there welcome Yvonne. patients the unmet a combination never where opportunity the strategy quarter significant differentiated potential was advancing to our drug and combination. morning Good

of axis Compugen types that TIGIT immunity. DNAM to PD-X the and and certain certain antitumor three in believed needed always patients in PVRIG, enhance tumor be has pathways blocking the may

blocking We to may a pharma of an now in in TIGIT increasingly the said players have the not always move consistent additional reflected be is that to TIGIT/PD-X larger indications. that various PD-X to concept drug combinations drug add enough, in addition

clinical to to Given addition sensitize we the the the and and inhibition support tumors data blockade, PD-X to initial mix, anti-PVRIG the of hypothesis. TIGIT of potential translational we and our to PVRIG anti-PD-X/TIGIT mechanistic and rationale an biological believe the have support

unique TIGIT, the We leaders triple PD-X, are this the immune leadership. the in combination approach and chemotherapy checkpoint, access genome are focused PVRIG, on blocking maintaining we three and [ph] three of

cancer The We microsatellite to colorectal enrolling for is cancer. studies screening open not of have is on typically responding stable in platinum initiated ovarian and patients. immunotherapy, patients former resistant X indications follow proof-of-concept and latter eligible the

are refractory in-patients to In previously supported to in were these by data desert. immune encouraging have indications difficult COMXXX treat anti-PD-X mechanism clinical standard activation we and with tumors of in-patient of benefits, including whose care, aligns These immune that action. refractory to demonstrated

two strategy biomarker respond. of We contribution patients to building route COMXXX goal the build that in of understand provides registration components, and a these is follow-on us help the fastest to our the better assets on indications. in likely to The strengthen path most the the clinical COMXXX de-risk evidence, the extensive and to and studies believe lead work this identify

the of executed quarter on first our the year, we promises. In

to the by we be final enrollment we’re the report findings Firstly, microsatellite to in of colorectal end XXXX. data track initiated our excited with study and year cancer in on initial

with preliminary activity nivolumab This naïve BMS anti-tumor in on annual with the recurrent antitumor in combination include encouraging data conference safety will patients. the of showing anti-TIGIT June, will endometrial in metastatic stable ASCO microsatellite and and data in cancer. present at we patients COMXXX Secondly, activity

advanced patients dostarlimab rate our COMXXX XX%. will tumor an with approximately response have of combination care. additional Patients in microsatellite triple support activity as shows stable patients refractory of we similar In ASCO population endometrial The data overall in options. of antitumor limited standard an serves present type cancer treatment for mediated at for a another to

TIGIT CRC COMXXX For platinum now, proof-of-concept in using our number these the studies on indications with cancer with by and evidence our strengthen focused own goal a ovarian anti-PVRIG pembrolizumab our patients. of and in COM-XXX enlarging in MSS we remain combination to the resistant own

these that our COMXXX our leveraging pioneering potential suggests data we computational thirdly, And our the two for continue treatment platform. own discovery pipeline beyond However, indications. feed combinations goes to

showing to we affinity approach to harness cytokine that oral which Immunotherapy protein, cancer. activity. freeing natural preclinical with treat binds at Earlier Cancer presentation T-cell IL-XX potential endogenous gave data We this COMXXX, potentially novel CIMT, month, IL-XX our an lead asset first-in-class and on high and Meeting presented COMXXX utilizes Europe preclinical binding restoring to a killer biology

protein and blocking without the that release peripheral in immunity affecting IL-XX to activate growth microenvironment showed binding prevents tumor tumor neuron also tumor in IL-XX We marker. immunity

that and unique already the challenges. clinic. systemically with approach given are is are recombinant Our patients associated pathway to safety this cytokines or from tested different from pathways These targeting were and other in

tolerance antibody associated pharmacokinetic system Consequently, approach that antibody the where administration. [ph] in to and of interleukin-XX, immune our has advantage upregulated is cytokine tumor COMXXX it not believe is to stimulate we the the it potential with microenvironment fight of the freeing and limitations systemic cancer. body’s is avoiding typical and by that works advantage an own our mostly cytokine, drug a the potential this The

XXXX assets expected runway end support through derisk cash at least the our Regarding our to have reach finances, and of COMXXX operations, milestones, COMXXX. we an and lead

to is possibility address future a potential funding unmet big non-dilutive a this first We unrestricted funding, significant assets having in priority. In opportunity our of a assets terms see best-in-class as need of pipeline our with X or immuno-oncology.

for Alberto update. hand With over I that, will the financial to

summarize happy I’m I results. our to start Anat. our balance. financial cash with will you, Thank

affirming As of bold as December hypothesis. we axis DNAM-X in on approximately million XX, has $XX.X on XX, execution our our had XXXX, The million efficiency of approximately no our continuing XXXX, cash, company capital March focus while with debt. $XX.X compared

and emphasize cash XXXX. are this focus of We cash importance deploy potential from how our key making inflows, disciplined in is will milestones AstraZeneca. not any the include potential does our of reaching collaborator we cash the efficiency important payment available on we through milestones we recognize cash least with resources, to that our end runway It at sure including

by payment of run of The timing milestones AstraZeneca. progress will on depend the studies

achieving we of for payment dosing X preclinical to milestones received and $X.X the remind of To breakdown you development, $XXX provide Phase $X to date milestones milestone For million commercial the for cannot and up million, payment. in the million in Compugen X and Compugen $X patient contractual studies, respectively. million reasons, entitled development milestones is first Phase of aggregate product. first regulatory to the for an and receive

quarter in XXXX. first were first quarter R&D XXXX our of million the million, quarter in were to first plans. with line of $X.X of expenses compared $X.X the for Expenses XXXX for the

in XXXX G&A $X.X million, Our the of to $X.X XXXX. for quarter were the first million expenses quarter of first compared

diluted and or or XXXX. loss basic per $X.X net share first compared For million, XXXX, of $X.XX million, $X.X of quarter first per basic was of in and $X.XX quarter share, net to diluted the the loss a

I to will With Anat that, back hand to summarize.

the year. PVRIG To this Alberto. and initial from to the MSS tumors evaluating studies of most are are leading These cancer. CRC and building by could free prior and This PD-X end blockade targeting respond data and metastatic on a immunotherapy right sensitize lives summarize, patients combination. potential of that cold of may to blockade findings to offering tumors track chemotherapy transform TIGIT hot, platinum resistant you, TIGIT blocking triple a for option present is not are real on we turn Thank the PD-X X suggesting tumors to opportunity competitors potentially combination our PVRIG, studies ovarian with

over questions. I With Operator? the for turn will call that,

question question-and-answer of from Instructions] Thank time, will is Oppenheimer. gentlemen, you. the Breidenbach Mark Please ahead. and this Ladies begin [Operator The at session. first we go

Hey, thanks and my the congrats taking for quarter. questions on

comment you and in from between you colorectal the the through me. give product cancer, this in ovarian. you’re Just focus us if development presenting until ASCO at a Thank of that timeline And be That could like then rough I the COMXXX, would could you. endometrial read just two clinic? potential is was second be appreciated. enters on question areas candidate any quick a you’ll pursuing ones on couple observations wondering if

Okay. Thank you, Mark.

the I meant send answer, if I’ll with think just [ph], me I you your question understand answer question, again] again. not, and me [quickly that what

cohort small data at data we safety gave So, is we’ll we perspective. antitumor from first, a as this to the and we’ll endometrial on activity said, show some the our cancer, and be able insights, ASCO publish and also

I the for the prepared in the program. begin an to discovery to predicting show, with indication As the different our that capability in way, by said the us way this were a we remarks, again, through potential is computational indication COMXXX

in findings we’re from studies year, able preliminary And that the then the share later be will we two pursuing to now.

study the end enrolling, complete study. patients enrolling As the screening platinum CRC data of patient I and to is enrollment XX towards already said, We resistant the to ovarian of up year. is will with for cancer CRC we the share aim of the

the from, full I may don’t So but we’ll cohort, complete [that aim on be believe one that enrollment. we front] would data to it [ph], have

point on ovarian, XXXX. your share at scheduled respect year. in whatever And that study, the of And next we of rest patients the we’ll and for the out XX in the question about data IND complete COMXXX, and of enrollment triplet aim XX then we have time, in to with to

Okay.

Just should endometrial asking first if guess, ovarian on either to observations from I directly cancer cancer? is apply we what the touching expect I to the was question, reasonably colorectal lessons or or back

at please it, I Henry, – and in. that look we think chime

I think on by indication. one it at indication that hand as look we

a that but the data clinical to antibody predictive very we of have indication. the different behind in totality we one important I point is the definitely view on indication us. mechanism the that see, data not for the that this of COMXXX think But in strengthening of that’s success So action responses, also that

So this front? that’s there to my view. Henry, would like share you anything on

No. Thank Anat. you,

by general. like will that, in said, remember, be to The Mark, thing is it answered indication Anat You based on indication. it

these all different, consider also One indications, for number are different that the of is to are therapies the things therapies of also. prior prior the

best indication. So it’s at to look each probably

separates colorectal So, for us example, from cancer. cancer endometrial microsatellite

both maybe I to only indications. of thing that’s two And those the one the they’re for these commonalities common think types that tumor that’s stable. of microsatellite

of in asked you that But about. at to full separately have results determination order potential the a read the make indications general, for look in we’ll to throughs

guys. Okay. it. Got Thanks,

next The Stephen question Willey Please Stifel. go of is from ahead.

that with just to of biopsies you and supporting ASCO, these mechanism any that’s able data I guess, good morning. will the And, on peripheral patients to naïve endometrial terms present? in I respect Thanks of taking be Yeah, can assume for speak be then, to might you that guess, IO treatment the whether questions. mostly should we action, or not markers? cancer biomarker and/or And experienced?

on then, I you’ll the about think population. take translational it, patient Henry, and I’ll the that answer

the day, studies data that are on biomarker and and which it’s have on current at to planned the not end on work prior of that of studies think the I work. But is, endometrial, cover patient. general, often the lot extensive the in only a translational that also we’re naïve doing

a patients; treatment, times discovery we to order be and all on our DNAM from biomarkers computational few able and working own treatment assess sample do. We’re with that could capabilities, harvesting potential axis in blood pretreatment, pretreatment to biomarker the experimental, on also biopsies

probably indication. present to data at per certain in point aim a we time, So this

preliminary the data population? would end We probably is to very for discuss biomarker the like of translational but the ending will that you XXXX. think present towards year work I endometrial, still Henry, patient

seeing only it’s will titles the if course, details of contribute are and will wait the that interested things assessment be to of the in things endometrial. the assessing to you’ve that activity. of think antitumor to the asked that and of the have see of be currently so abstracts one the available I of Yes, question for the And, now, one we’ll we presentation

of the kinds cancer. the not So and have these patients what patients the is received that also response status received, but what that, particular also endometrial also of all will patients some that for to are, these prior the just what in therapies have be important performance of therapies

So all things the time that at will the also. of discuss one asked these about parameters we’ll be are including the presentation you’ve at we look the the full that abstract able and further disclosed specifically to once

scan about the to of what guess, you might amount Thanks. year. us I’m the of remind just that think valuable show patient triple be cohorts? is you frequency the can in this then, And for Okay. data response trying two end I just the us of to able

Right.

COMXXX, referring two is cycles. So The nivolumab frequency every you’re to the triplet BMS-XXXXXX. of and scan

a weeks, so X months. So X [ph] cycle X [every first the is weeks] for

this think studies. to platinum the resistant relates I the CRC Henry, It’s MSS interesting. Right, It’s ovarian and basically. very same the Henry? cancer

for MSS the the same It’s yes. CRC,

Okay, great. question. my Thanks taking for

do four the the for Does that the every weeks, remember Is cancer that make endometrial disclose, frequency, same are because going schedule But it’s legal dose that also scanning sense? end every is two cohort we it at so the the Right. cycles. of is clear? to

from Truist is He Asthika passed Goonewardene next The Please Securities. ahead. go of on. question

taking my for morning good Hi, Thanks good and question. afternoon.

CRC platinum cancer will need you report idea an per the minimum and patient? get How you let’s cohorts. meaningful follow-up much the from do efficacy ovarian data resistant think First, to

you the would address to like question? Henry,

Asthika, there were of a colorectal asking bit specifically microsatellite little you was but stable background, cancer? for

you sorry, to have the little as that need Henry, platinum what ovarian well my good Yeah, view as both patient do efficacy minimum the cancer, think resistant the on puppy is a for was is? follow-up there. background per CRC Yeah, you what that in barking

I is. is minimum secondary you something antitumor be will mentioned. the important types activity What those for probably two think that’s tumor be what would follow-up the

right. look earliest responsive endpoint clinical the be control disease or or will So durable to benchmark or at rate,

these case patient a that’s or at. So stable benchmark [ph], in populations, may the plus disease be response look plus good to CR whatever special

patient a probably the this with is so at. that look population, most Phase Remember, few X benchmark very study is to appropriate

we be follow-up the patient bit of patient populations, interpret a in to in population it’s The at you that other duration be this. little observe benchmark would can to a depth it responses look because these small number, the a of like median challenging need sometimes

be example, much as if where things XX will you you For more to have challenging XX% confident it conservative. population, have patients should patient it that, more opposed that about larger be

another get response. of depth going this key when be idea year, of really going put be durability It’s be later] to that disease to to look this able [asked, we maybe you data be later and year, we That’s control right? the a so way, the good won’t Okay, Henry, of the response. going what’s to rate – to at data see [ph] to

the that onto look or instance, in from duration hard of Largely to point the really time the Duration the to either long disease, because disclose that. follow-up able of patients haven’t like been of if progression opportunity responses, the includes be an period are are therapies, in they antitumor reach haven’t be those follow-up stable also responses. study time, and the remember to the difficult short activity, who can will Because for event challenging, on this of the those follow-up to responded endpoint unfortunate the partial yes, at. a duration are time able be for it endpoint study, things I how responses enrolled until will another you patients the it’s

longer. much that’s So

Thank you, Henry.

but the that be into possible that’s we not as look the we exactly is at full it. on give and We’ll that as the consideration add clarity needs to I really meaningful. on time think the may will limited. try of will I’ll if we be But even enrollment patients it think I that data think data treatment we much share study just enough enroll rate depends that more and that have to to some take how cohort

are potential your I question is then you program last you. in appreciate program? data you Thank TIGIT enough your And just that both see my have for Thanks. that. it. to hand confident biomarker will a And how Got and PVRIG

immunotherapy. field Eran, and, just of biomarker add, the Maybe put I’ll put in it cancer please do want it perspective so. perspective to work you programs I’ll in for in if that

cetera. for ended think understand really, hard a at specific is ABC target addressing it’s et This all fields. these If with this is specific in we [ph], I [ph] up is and the PMDN not of maybe really that And to target that a PD-LX all come anti-high. years or triggered mutation not that all and with. is all anti-high that you a

really that’s So hard.

that and we’re think which I extensive is is that doing, on the work we’re all possible working venues addressing on. asset that this

we’re I and think say work. to that that increase feel doing comfortable the we success chances of we this

is has identify be sure given think be that understands to also they’re that biomarker it’s that there that we’ll the If triggered. have data biomarker it. can there But Compugen make if this I disclose, to And we when everyone the equipped in that well want goal we’re to there, it it. think, But is will to just I that we Eran? relevant think a not identified. I good meet chance will and, disclose

again, it’s is immune a PD-LX are people checkpoints we immune Just to Luckily, are and which most indications, of add not PD-LX responses the PD-LX shows most probably are PD-LX using biology microenvironment, also patients we these tackle in desert, this could because an where it biomarker, patients mentioned, PVRIG reflects negative which see are negative. working. and that as

until were patient what PD-LX responses saw we in probably extensively negative. So now, quite

And work related the the and And are And is do it that not we before to indications. mentioned. question we for it. this all a to challenges doing indication then continue to non-usual PVRIG trying while you the computationally success combination usual and and probably and not sequencing work follow we So for have PD-LX do maybe will across bit with extensive we’re PD-LX. the identify ongoing per success, all really it

And Thanks, Anat. Great. Eran. Thanks, thanks, Henry.

Graybosch Please go is SVB Securities. question next from Daina of ahead. The

the more conversations could which on? my answering I’m potential emphasize they conversations time or if wonder do programs, you licensing interested you interested data have Thank most in, going points in you and I spend the Hi, are help us question. about specifically what thanks on. partnering you. partners most for understand do which the

Thank you, relate one. Daina. this to I’ll

stage discussions I’ll we not how rich, I we we sitting in partnering to we’re seen. opportunities is pipeline that domain. COMXXX, try we opportunities specifically quite the that give has COMXXX, of discussing and have or And are have, partnering have the in different any could this general, that be pipeline color COMXXX, are that While that in public do with not the have not a earlier now think that form some about in opportunities the also

are they and we unrestricted of But field cancer with or could assets, sitting immunotherapy that options, I the new bring first-in-class presenting are in best-in-class. treatment opportunity believe

COMXXX, that the you’re unrestricted fact August. COMXXX. will of In think I aware it is COMXXX, that since

opportunity companies that not I in is prepared be combine. thinking time what for COMXXX, the saying I comments, to a the agent TIGIT/PD-X enough. that are quite And long related think for and to about will also now real it we’re the

based this to order deal larger that signal. the We And will PD-LX to and our the this is to TIGIT/PD-X it. only for some allow studies us to we be own low on third strengthen show data with judging saying third our our combination and for asset, hopefully PVRIG types to asset are without combination extend allow to TIGIT/PD-X to only have populations respond. added enable order time, needs need and quite the tumor to or that We’re combined in patient in people with fact

in look So how it axis order to clarify that general. and important further the we at potential DNAM in in partners may extend this is external hypothesis terms have of

specific colorectal focus and also additional now indication, endometrial the As we to types cancer in in the cancer. selected and we’re but tumor on showing in that cancer ovarian

only potential the but important in to about to forward, us discussions. order path that’s So with FDA in partnering speak also not for pursue

a I important So also guess TIGIT that’s and looking will also by that is one others out how we’re it. thing key. perform that it’s there, at

aware – pattern is There [ph] a it. probably in former I The front renaissance of a analysts much differentiated There is differentiated lot the table. as companies of being Small we on bring are of we’re and say pathway. this it excitement to we’re the of that are as COMXXX, that highlighting really biotic it out I’ll aware sense and [ph] that there. think the with formed,

this addressing addressing than way that we’re in of neuro this totally we’re the the different that pathway And is actually a cytokine and And believe we handling way therapeutic cytokine. biology others. window

out right new right that’s is the to table asset. the something bring the there with time we excitement and the So there, with

So that’s potential what I can on partnering with us. say

it your maybe [ph] Let is up in How that you what kind confidence think more are timing have have about of follow-up certain focus important value? me that non-dilutive as points event? be you more us remarks. of in can will on financing data ask of one the then, investors we you reach the attributes that of bring your to is talk and to describe, you prepared terms Beyond your Could happening? which else going pipeline, can goodness because

any think any I COMXXX, don’t So that decide see question, that into We are don’t and I think it’s we enter see a to respect points with to pending making. that partnership. data fair will

great to about this exactly We have what package asset. we’re saying a show

So that’s one.

that question, I on already I have. that and that saying it data a on think was because fair COMXXX think depends the the it’s internal I that COMXXX, we

well. is that need and from of stage is this the that end depends as not to given Definitely drivers, we our we goal pipeline. be internal and the that our also get perspective, don’t doesn’t a to external mean on will able share it XXXX to it’s to but a On without data to and partner think stay generate, that goal it clinical I it’s internal not everything data order – relevant and in

market with discussions. external priorities So with internal we’re and potential putting we and our the deal and place, in

the in support order the for that our we generate believe info cash have potential company and as additional status. financial to to we assets So the

you. Thank Okay.

you. Thank

concludes for go now to the over Q&A the Anat I will call session. ahead. This please a final hand Anat, remark.

operator. you, Thank

cancer on pioneer are Board. Pardoll, an and Tuesday, with Advisory Investor Scientific Drew a take to call, you the I we of remind immunotherapy hosting of May in Compugen’s will a end event we opportunity Chairman Before XX, this

DNAM Drew led was the development world anti-PD-X for propose antibody. is DNAM of first his the Drew And, and also clinical I think, to immunotherapy, research axis. first the PD-X expert cancer blockade in the of potential a next on to the patients. pathways the in you for for views will blocking PD-X axis why TIGIT really immunotherapies generate PVRIG, X enjoy and Thank cancer the his participating has today. the you

may and disconnect. go You ahead