Compugen (CGEN) 20 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for joining us today. Welcome to Compugen's First Quarter 2024 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. I would now like to introduce Yvonne Naughton, Head of Investor Relations and Corporate Communications. ahead. go please Yvonne,

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

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

business company statements we you potential company's the that lines our call, may results events, actual differ the well achievements remind wish regarding under company's as expectations company would forward-looking programs, during and position. results, as and of of to may that development like We the begin, accounting-related to cash projections outcome, we discovery Before progress financial make efforts platform, matters statements caution performance regarding time outlook, only such future and or current materially. assumptions, this the and for anticipated beliefs, but our you reflect planned statements

These projections to known in filings risks Form company obligation you on we report unknown statements company's recent are and future. these update statements annual undertakes to SEC details more The most for to on subject including and and refer the the forward-looking XX-F. uncertainties risks, the no and

With that, to over I now turn Anat. the call

the and through I But and in our planned Thank Today, pipeline to the in cover answer will of have the I you, first for everyone, across an we will rest XXXX. and progress significant just would our quarter computation you, in significant of thank move Yvonne, XXXX but a quarter joining us call. Compugen catalysts start this a before is then made practice, our AI we first on year, discovery pioneer drug frequently thought in theory, company. I get a with there, targets is the novel I question of go and which is differentiator. not in yes, And which Compugen, asked I

We to feeding drug preclinical target from The cancer significant discovered prediction our trials assets successfully continuously own resistance. moved most capabilities. our with address computer on the to potential discovery discovery immunotherapy through clinical computational discovered bill to Gilead drug pipeline our COMXXX, highlights newly recent and opportunities

validated at multiple Our platform delivered platform. our validating early-stage to We engine to undisclosed power opportunity partnerships a multiple advantage creation. to our which value deliver on pipeline and is and already fully is assets, speak expected and AI plan and are fit This strategic ML future long-term owned events. discovery discovery platform fueling platform more pipeline future programs clinical multiple competitive has our the the

to So the call. of In now executed of year, I'll quarter again the on move we first today's our the focus promises.

conference ASCO ] with in pembrolizumab [indiscernible] proof-of-concept in patients annual study. COMXXX the liver with and of present in antitumor [ June, preliminary activity combination COMXXX we from in Firstly, will metastasis and ongoing our

completed more this than in we in quarter findings on of track we're report reticent fourth year. the initial enrollment ovarian our cancer Secondly, and platinum of study, to XX patients

diversifying in the unlocking in March in Thirdly, paper Research of presentations resistance April reflected our COMXXX new Cancer address cancer was the year, Association and and novel American [indiscernible] along this by have of PRG Conference immunology and the targets approach our progress biology made, the we to and our with of drug anti-immunotherapy at publication research.

its ] than presented the And the we potential additionally, to a sensitizing the cytokine. PVRIG of therapeutic suggesting in potential other the first-in-class and conferences, rapid advantage data wider potential role At ] unique [ data affinity immune PD-X. binding [indiscernible] checkpoints tumors environment both supporting biology window supporting high systemically its showing COMXXX protein our the [ tumor macro anti-IL-X antibody activities to of delivered of localized with

assess advance the trial, [indiscernible]. cancer. [indiscernible] [ rapidly of quarter ] study first are We're a continue Phase developed in to metastatic that The they first-line with delighted with XXXX, as partner as compared with development pembrolizumab Finally, cell non-squamous noncemoclane expression. [indiscernible] monotherapy [ high collaboration initiating and will being III patients directed the Trop-X cancer ADC of in treatment in in for [indiscernible], p[ [indiscernible], PD-LX our in to second with advanced combination a AstraZeneca or ] ]

biliary a we the growth upon payment reminder, first indication Phase and million second Phase payments [indiscernible] in As partnering III smartphone milestone royalties. trial first realizing a Under $XX study and our the agreement, patient us retain the milestone payments development we're this for of opportunity first eligible to and recently indication, closer not non-squamous, the second received tract cancer, a dosing cancer. of to as a III reinforces brings major our additional pipeline for into progress such The to future addressing indication. strategy and the

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on the a what to Moving of with be from data and year us is readouts to expected updates diversified XXXX now our planned for the multiple rest year. for plan catalyst portfolio.

with of [indiscernible] of were reporting significant plan of XXXX, As XX we [ and we the study from COMXXX IO the ] hard-to-treat need in addition in with patients this data [indiscernible] cop-concept biology of [indiscernible] stable of from present ongoing our rate in [ only in new overall population. [indiscernible] liver report unmet a and particular, [indiscernible], action. COMXXX with treated have patients in represents [indiscernible]. mechanism response treated and metastasis cohort disease with COMXXX and company dual those medical and ] been such to June, who combination presented data patients to metastasis, to first supporting combination patient liver NSCLC liver and the activation to including responses XX% we the correlation first [indiscernible] patients our in

based initially expression Although this indication was selected not pathway dominant PVRIG on level.

larger aim our [indiscernible] initiated we in the to see the added the our ongoing ] [ as COMXXX an dual and assess patient response and to and improve strength [ with cohort, from with in we combination. liver in study with clinical data, if NSCLC seen [indiscernible] ] the on Following this ticket to findings encouraging patients could anti a [indiscernible]

Recurrent last ] on 'XX. of some safety data with X reflecting data supportive update patient the in we unmet activity rapid, X, cut at continuing treatment patients the be mediated April enrolled June cutoff ASCO and significant was and data need with 'XX at September and upcoming the will The COMXXX [ remains presented the a date. of

to in the clinical way X may patient with population suggest total biology we activity notoriously are this IO and the valuation cohorts observed Yet the liver further to warrant in the resistant of an of believe mediated However, we PVRIG have hand, MSS-CRC. with with of approach ion COMXXX metastasis. of the NSCLC unique evaluated the other COMXXX that in in data date not totality the is effects forward agents due

Therefore, other the COMXXX patient [indiscernible] open for this combinations in population.

ovarian indicative not such PVRIG levels you With that will resources more cancer the ovarian It MSS-CRC observations this and this, [ not time. as note have our of dominant this platinum-resistant is considered in each that distinct I which to be at internal made from we reported cancer. other, important remind focus of other. ] will each paper are are expression tumors However, biologically in

platinum triple data resistant We to at believe brings medical and to next conference. standard the present presentation a reported catalyst data on cancer for ovarian have catalyst. on encouraging have [ cohort which we current our data of for from FYO the months. the platinum-resistant over to quarter with overall we patients, favorable, of XX ABC for be months, is cancer of single-agent reported in combination is on Based at which some median combination, platinum this available considering December first Data treatment durable some had in presented stabilization to ovarian our rate months. compared of with our treated response is X.X in response XXXX, XX% The or date X options. excited around next is in for all patients care. patients the we patients XX cancer, completed data presentation a will our fourth plan of the And of were us enrollment. who We is report is previously totality chemotherapy X This responding around XXXX, tumors for triple the their investigators the progressed ovarian replacement ] to in for to shrinking track of of duration

and safety patients achieved the hard-to-treat a favorable profile. [ high-grade [indiscernible] ] serous were with Responses adenocarcinoma in

response of microenvironment activity These We also COMXXX benefit. Of clinical than between ovarian months. association cancer patients XX we showing tumor presented presented an whose showing PVRLX in previously expression preliminary [indiscernible]. a patient partial with data a note, had and was monotherapy also data more biomarker

the control data. showing rate, the For of clinical plan data data disease including year, present to biomarker path strategy. the predictive towards a safety, the registration, characteristics fourth data to which ongoing and is [ the we ovarian to rate, responses study, employ us allow on in biomarker cancer overall depending of in a benefit response The ] quarter expected platinum-resistant and next study duration potentially pursue enrichment data on preliminary

we achieved are which payment we will a in advanced are and second million With the year the milestone stages on were planning submit this for that in for also of for XXXX. IND eligible in study. COMXXX Gilead addition, Phase expectation, half to clearance In track this be IND expect of $XX the I from

Phase of data Finally, AstraZeneca expects in this in cell their second trial setting. the I/II frontline in from non-small the year, cancer half in ARTEMIDE-XX

would the the me and Alberto over since biotech care has Officer rest Financial ] commitment introducing us David XX. at for Chief [ take Silverman Officer passing in to a experience to Compugen. David I this joined as Before been the of over traded Davin and rejoins great a has like Alberto on I'm in NASDAQ, and opportunity Alberto the take as effective looking the to ]. Chief [indiscernible] you industry XXXX. reign company from will through the August financials partner he to Financial of [ to forward health go to to here leadership team his

emphasize while I to that benefiting enhance cash also and want to were advance confident our from side position financially milestones also disciplined. to additional

need best-in-class unrestricted X assets undisclosed have or early-stage address immuno-oncology. possibility assets with to potential the We multiple unmet along with a significant in first

pharma royalty strategic COMXXX, and and we partners, payments. have and were ] validating In future strong milestone AstraZeneca X root to respectively, receive ribagastamide on from eligible Gilead [ addition, and

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

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

making cash our XXXX. sure partners. $XX expected not $XXX.X of second our half biliary the of ]. in we in IND Gilead to COMXXX cancer. the related you As first focus is and does of include in million company the It tract includes trial XXXX, compared of we approximately expected AstraZeneca $XX.X cash while dosing this way into Gilead $XX cash COMXXX the [ had from our on in December emphasize the and $XX disciplined of cash payment payment reserves we of taking This million licensing potential on XX, any the cash Phase no into clearance million to XXXX, milestone are that XX, from from the that efficiency, as I balance debt. additional payment we million remind in a has XXXX. inflow for important game approximately from upfront . We March reaching with milestone recognize how patient account deploy III cash million With importance milestone

R&D $X.X for were were plans. Revenues Expenses the XXXX. XXXX. with the the our recognition for 'XX in The license reduced the $X.X line comparable million approximately of agreement XXXX revenue Gilead. for a compared in in the payment first first million, quarter of first of period to reflects of revenue expenses upfront from million quarter the quarter from portion with XXXX no for were of $X.X QX

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

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

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

Thank present were with human . pipeline. you, which the fill deliver a [indiscernible] clinical year. end and Alberto. as across diversified as plan catalyst pipeline data XXXX resistant MSS-CRC the our to in coin summarize, the [indiscernible] at by expertise an to out platform our pioneer rich [ mix combination stage data our powered as oncology To validated We're to track by well from ] [ ] is discovery machine of AI [indiscernible] on ovarian our differentiated of learning first-in-class our stands for cancer and platinum the at car

to for initiation half the of are submit IND our for for planning Phase planning this second COMXXX advancing this of I in and program. are year We the

internally of this fundamentals am With will their place of in what to here collaborative believe partners, our shareholders I the by time advanced dedication, and we thank achieving and for a value all well-executed our the year and exciting like and at I pipeline colleagues we that first daily Compugen, would us is for in up being is have for compliant to resulting our they are success. an the Compugen. cancer proud patients. quarter spirit and setting future to bring

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

is question Willey first The Instructions] [Operator Stephen Stifel. from of

on just Congrats This our the is progress. for on X have on questions We end. [indiscernible] Steve.

colorectal to related The first is one trial.

it be how actual what would presentation following And for expect the Do to following COMXXX the IND second forward asset? this submission abstracts ASCO versus and will that you detail the this comes you question when abstracts additional be path the for know presentation, the I much study? clinical to related should incremental data But any ]. this disclose available [ think would we this presentation, week. actual in So will

So translational file disclosing we'll taken their be But at we the and need the half initiate was start study that second Gilead which be yes, for It this of we data will when June cannot Gilead the data, year. And and some of the behalf, question filing know. IND this second before presentation commit cooperation going guidance the COMXXX. characteristics. and will CRC share durability, that will of data in et I as cetera, Compugen. decision obviously, will abstract data, baseline with is antitumor X is be asset on in and with activity, the I and safety, patients data And to be to Phase the obviously, worth a will maybe give XX a enrolled from I'll expected this patient for for the of an This is study clinical out week.

not And that antitumor we've stated, the at PVRIG we time the that we which, that the infection, in one the of you forward mechanism -- COMXXX that deliver is supporting we be right and based for when the ] time other already IO today, activity the combinations shared would believe there biology way and the COMXXX be right We maybe decide in with as that is supportive that the it a population. target patient guidance that's next [ to for MSS-CRC consists we COMXXX of we've that only combinations. liver as [indiscernible], believe know, could path guidance took know of us we on believe was data not this the important MSS-CRC, in path, we share data to decision already XX%

forward at taking nights even this path in this not time. ], [ point maybe we're earlier So in

question Asthika Truist Godwarden from The Securities. of next is

you're And Is is it in to just what here like comment more So resilient a more on bit was is you us lead blockade, [indiscernible] more that less -- maybe the and but activation but checkpoint XXX understand What maybe given less can active, biology sounds on and here want colorectal. you little missing maybe for Eran I'd maybe missing to like help immune you do I this think have dig debulking. maybe for be what this approach. to combination this efforts XXX, XXX And that take missing? next you pursue address different that saw in maybe should we into? Or tire then think going actually, but to would another like that to the how with identified you earlier priority or you're avenues would tumor encouraging other ovarian what's there revive we CRC, about for combination? to maybe beyond a

wants add. the that? not by June Maybe more see pursue. want worth Okay. I'll to we about data Eran order be to with saying believe we discussion that is start anything presentation do and X. say of will IO-only, But enough following really be that than in to maybe can in But I'll Eran, get say this specifics it to taken to what maybe we the that just you the

Yes.

are definitely cells, where understand what ],[ in places ], to of So eventually we've to this combination the [ [indiscernible], very with And not maybe have of seen you it be activity of go And for in rational in could immemodulation MSS-CRC, immunogenic enough again, as are to in previously, that need And the increase normally have yes, to this there at see what in is. and what patients at indication, kind you [indiscernible] sufficient patients, discussed IO right? combination we this increasing based resectivity to but the not is you in really convince check part point the forward, something approval. move time, working IO wiliametastasis employed difficult other have [indiscernible] point consider but sufficient points not in seen consider triplet you pure difficult to of not time. in not the seen activity the amount future, the T in but I've to towards

additional to tumor And actually question takes me types. second then your about

I to populations on very [indiscernible] tumor that across in noninflamed indications and in is where not with accident. PD-X data or not very low have think we to or that the activity responsive types a PD-X hand the responses really inhibition

a to ovarian and really there. [indiscernible] forward active package more decision mix than or focusing data recent than patients COMXXX how data have on a We including now have other data, XX of is worth platinum-resistant move XX we cancer, we and additional have cost indications the and really about of which

in [ inflamed how generating tested this never in for of And in we [indiscernible] is we've inflamed in inhibition studies stage why we we indications, in do asking decisions on didn't the work obviously, cancer. within us all non-IO platinum-resistant path do is noninflamed indications. activity and for [ indications different type to ad single the the [indiscernible] that that we combine combinations. indications the we now Also think we reason And biology this PVRIG year, and activity. it, is combination, had the the it an during I open us without this question, gave could in nonclaimed in COMXXX CX and this mechanical at in ovarian ] ] are will move comfortable that that indication. focusing forward could the we're do And we other in infection really also is the show and paths the make

would those. I maybe on will and add indications, But of [indiscernible] focusing [indiscernible] pre-identify indications at that is [indiscernible] like you few other [indiscernible] are the one mentioned moment, for example, a at [indiscernible], just add there with settings. And more

profile definitely, enable COMXXX And of this So opportunities. us are in with really multiple there maybe safe safety in other indications, that the combination, combining maybe lines. will early

opportunities again, have the which on we are but now focusing data. [indiscernible] we there there few, So ovarian are are a and quite cancer,

Graybosch is Daina Leerink. question next of from The

me line chemotherapy can And I'm with of how work. on therapy a of this not combining ever planned like do I I you're get think, you're past path that in cancer. forward. different seeing of lung path wonder the going discussion And or enrolling course, And had it that. study. particular, to ovarian, signal VEGF, you of that pure started that on care to combination, reflecting considering agents I get chemo you And takes these one combination. IO And bevacizumab. PVRIG in one others and And other continue your colorectal a tumors if is how you another that to to point, there's standard in in there's I'm sure just that strategy for a wonder going at considering reminds difficult kind have taken

in that get cancer that So specific and you again, -- should we lung point? remind us a to rolling would why path you start path a see didn't what

to you, Thank in. chime feel free ovarian. start Eran, I'll with the Daina. and Michelle, I'll start

is that approaching package that of I'd focused now. say about we emission on And we -- forward with benefit, the have data the for I'd combination the a we're First, And biomarker population. we targeting there IO of us correlation, see say that that path clinical with Daina itself, different combinations. we're us first, you've asked that feel if type patient and repeat we

and really from value also that that the that, those a said So And ABC, true combination -- action the agent, [indiscernible] is be are from I safety on are [indiscernible]. that with PVRIG as eligible. Having of a cytotoxic based those it of combined on being and standard to relevant, care. ADCs of profile, may with and mentioned is chemo, this

focused taking from how cancer. ovarian the So obviously, front move into we ovarian the get data the consideration can this on on ovarian and study, is and in decide we competitive why landscape, forward, this we

that Here, earlier profile, and our combination MSS-CRC company, I and is ] and at [indiscernible] risk still, in forward indications. and say the this being this said, is here, see, in for liver time, of you But and the profile to with the Eran, door moving think profile [ Michelle, care. pursued I safety-wise, that a see with this or mets indication that resources let's mechanistically sold in focus this standard as we that we risk while but put shouldn't think of open in we the this future. stage lines, a I possibility in of the is Again,

So that's for CRC.

What I there? about didn't would cancer. non-small ask the be asked CRC. I cell lung about [indiscernible]

that at need were where the data, Sorry. to we're we thinking on we still the time combination, that we in general, on that we to decided study. singular table. focus about small order move the pursuing a And the internally of [indiscernible] data on that we -- of for indications partnerships. we saying, chemotherapy not certain lung that small that very have forward. of can the And in focus I that already [indiscernible] that [ and we but that on I pursue patients data said, can also in priority cancer was time, patients quickly -- in ovarian we a Brocade pursued indications is indications ourselves day the be had the in of we company is non-small makers and indications nice to The decided as we non-infant had by cancer studies prove indications [indiscernible] the indication to very nice add with and was cell And as will data. though, sort And planned in new correct, a in Check cell concern based the that Eran if experienced end then Point X ], and studies as fact time, reason point mentioned, we at move us contribution it's that . This at larger combinations? could partnering all large as a a Eran,Michelle, anything to activity non-small to

do when that we just effect indications data a presented that's driven because emphasize COMXXX. And were we the what was definitely across to look you going saying. we've again see in, I by

we've strategy lot moving are that data and have So even different sort where forward. are think I to presented of breadth, within before robust opportunities like endometrial a indications more we other options of considering there a

And this we're on at point focusing IO. I the think time, in pure

it, to some rush I this now modulating and us with maybe other of T PC is ovarian in excellent it's continue a the strong or is chemo-free, we and regime if is that. to We indications chemotherapy combine clinical. some have to in to really immune with that for to really explore it's and indication will filtration. to with the need [indiscernible] safety the of pure cells the of a rational with we the combination. an effects is strong prime unique Bev and mean immunogenicity from profile, definitely an there pre-clinical synergy there's pushes [indiscernible], really combinations, other data But need combine doing again, have which a ATC ability approach This data enhanced rationale attractive, with new

definitely the and consider we indication moving forward, So data, that the rationale-based future. we indication consider in other the may

from Rodman & Tony The ]. next question [ is of Butler Renshaw

so. marginal will that have or set? is toward the a also point. to biomarker were, H which with high for all I one BEV, want set you they forthcoming. moving mentioned wouldn't scores are believe, PVRLX. respect That's that's why segmented you rate cancer an agent. settled I fourth A positivity had recall, towards data the to assume on strategy, who With larger even quarter part and single if, score, Number And last patients as activity -- forward -- X who while patients had in by a fact, And cancer a the include clinical ovarian Will question. forward are Is it of guess, XXX has looking for then stay with XX% data for registrational a hurdle that certainly is data settled on that is those third be this Eran, that H you the individuals benefit would potentially point not there I be for ovarian BEV, Have we should I had trial. relatively reason may or on you actually --

you, Thank Tony.

start you Michelle [indiscernible] relate answer let the what to the question. H I'll So score. I'll with best about asked

different First, data, that hand biomarker present what we at that have hand. data, have I not And to data make now the We're the the we'll continue do look you biomarker-driven, before out bars the have score, I'd in the hand, This is hand. durability say present terms related in us the that it to It we the efficacy, to we to will PVRLX, really progress data say with not And will strategy share obviously, take we in limiting ruling data on enrichment a to we assess biomarker. not yes, in we study depends in on study data a it the say the biomarker. Eran, we will around an in let on the that that and have or of a be that and in are the allow the with [ data, have ourselves activity, help may without work anticipate to decision, also a and we that that the data to we depending depend will X we ] data, still of to -- go translational, the relates want but we hand. data do maybe finding. we biomarker will [indiscernible] that

PVRLX. Tony, the patients our very we higher combo important This And these the long of for biomarker. the which a registration of to it have enrich the patients responses score this combination for having treatment the benefits who the observation in opened to remember yes move study yes, course, that faster So and correctly. responded biomarker, the benefit showed of and from potential door of clinical a all durable previous then, had who had for

will in need we is patients [indiscernible] obviously, we define cutoff, ongoing work this So phenomenal also cutoff and to to totality study. in the the show the really the study together, much biomarker need this selected we can the at that look have more the response also actual rate, really we with combining now this to study the define looking to the and and ASCO when data, then if we forward correlation move define of the studies the to

yes. ongoing, is this So

want you on comment bid? Do the me to

Yes, Michelle, go ahead.

Yes.

it's population. the bit, interval of ovarian other relapse so they I'll ] on patient until therapy are might do second the are line repeating ] by get if initial repeated really platinum-resistant so which resistant, that But platinum X to way regimen, in study more may does with basically together inhibitors repeat as the enrolled the a far, in been bevacizumab bevacizumab Generally, And defined months they includes or patients around. they following full patients, the sometimes these [ platinum. generally, become mainstay I'm lines cancer patients not or less. put have a maintenance, the our PARP agents the in the that Platinum on but population. So it -- of the platinum-free patient [ get the treatment do in

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

. and go disconnect. may You ahead