On Monday, Compugen (NASDAQ:CGEN) discussed first-quarter financial results during its earnings call. The full transcript is provided below.

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Summary

Compugen Ltd reported a solid financial position with a cash runway expected to last until 2029, supported by a $65 million transaction with AstraZeneca.

The company is advancing its COM701 clinical program for ovarian cancer, with ongoing trials and patient enrollment across the US, Israel, and France.

Compugen's partner, AstraZeneca, is progressing with its rilvigostomig program, with multiple phase three trials and potential peak annual revenue exceeding $5 billion.

Financial results showed a first-quarter revenue of $2.2 million and a net loss of $7.7 million, with R&D expenses increasing due to clinical trial costs.

Future outlook includes releasing additional data, particularly regarding the rilvigostomig program, with potential for regulatory and commercial milestone payments.

Full Transcript

OPERATOR

Ladies and gentlemen, thank you for joining us today. Welcome to Compugen's first quarter 2026 results conference call. At this time, all participants are in listen only mode. An audio webcast of this call is available in the Investors section of Compugen's website at www.cgen.com. as a reminder, today's call is being recorded. I will now hand the call over to Lindsay Trickett, head of Investor Relations and Corporate Communications to begin. Lindsay, please go ahead.

Lindsay Trickett (Head of Investor Relations and Corporate Communications)

Thank you, operator. Good morning and good afternoon everyone and welcome to Compugen's first quarter 2026 financial results conference call. With us today are Dr. Eran Ophir, President and Chief Executive Officer, and David Silverman, Chief Financial Officer. Dr. Michelle Mahler, Chief Medical Officer will join us. The Q and A portion of the call will follow. Before we begin, I'd like to remind you that during this call, the company may make projections or forward looking statements regarding future events, business outlook, development efforts and their potential outcome. The Company's discovery platform anticipated progress and plans, results and timelines for our programs, including disclosure of clinical data, financial and accounting related matters, as well as statements regarding our cash position and cash runway. We wish to caution you that such statements reflect only the Company's current beliefs, expectations and assumptions and that actual results, performance or achievements of the company may differ materially. These statements are subject to known and unknown risks and uncertainties and we refer you to our Securities and Exchange Commission filings for more details on these risks, including the Company's most recent annual report on Form 20F. The company undertakes no obligation to update projections and forward looking statements in the future. With that, I'll now turn the call over to Dr. Aaron Ophir, President and CEO.

Dr. Eran Ophir

Thank you, Lindsay and good morning and good afternoon everyone. Before I turn to our business updates, I want to take a moment to formally welcome Lindsay, our new head of Investor Relations and Corporate Communications to Compugen. Lindsay joined us with strong experience in investor relations and we are thrilled to have her leading our communication with the investment community. Welcome Lindsay and we are glad to have you have you on board. Now let's start with our business update. 2026 is shaping up to be a significant year for Compugen and I'm pleased to share our Progress in the first quarter of 2026 as we continue executing on our strategic priorities, starting with our fully owned clinical program, COM701 a potential first in class antibody target PVRIG, which is an immune checkpoint with unique biology, much differentiated from other checkpoints including PD1 and Digit. We believe this unique biology underlies the clinical activity demonstrated for COM701 in less inflamed indications such as ovarian cancer. As a reminder, ESMO (European Society for Medical Oncology) last year we presented the pooled analysis of clinical data showing that COM701 in monotherapy and combinations was well tolerated and showed consistent durable responses in patients with heavily pretreated platinum resistance ovarian cancer. Based on these results, we decided to progress the development of COM 701 and test it in earlier settings of ovarian cancer as a maintenance therapy in patients with relapsed platinum sensitive ovarian cancer that responded to their most recent line of chemotherapy. The rationale is to allow COM701 to induce its antitumor activity in early reliant patients with lower tumor burden, less compromised immune system, and by that increase the likelihood of these patients to benefit from COM 701 unique modes of action. For this purpose, we initiated the MAYA adaptive platform trial. In such study of this trial, COM7 is randomized as maintenance monotherapy versus placebo in patients with relapsed platinum sensitive ovarian cancer. We're actively enrolling patients in clinical sites across the United States, Israel and France. Having all sites open and enrolling spanning leading academic centers in US and Israel as well as sites from the GINECO French Cooperative Group gives us confidence in our ability to complete enrollment on schedule for having the MAYA ovarian median PFS data at interim analysis by Q1 2027. This patient population, comprised of those progressing postparp inhibitors and or BEV or who are not candidates for such treatments, represent a significant unmet medical need with no current standard of care. We believe that clear prologation of PFS in these patients could inform a Registration path for COM701 and make it a potential backbone for drug combinations in this population, while also enabling a potential broader clinical development plan across earlier and later lines of ovarian cancer treatment as well as in other indications for clinical signals previously seen for COM701. In addition, we're happy to see our partner AstraZeneca's progress on their broad RILVE program. We remain confident in RILVE's potential based on its differentiated bispecific antibody format in addition to its clinical and combination strategies. Last month, AstraZeneca presented multiple abstracts featuring RILVE at the AECR Annual Meeting in San Diego, reinforcing our confidence in its differentiated design and growing potential. This includes preclinical data demonstrating potential opportunities for RILVA as an IO backbone for combinations and also late breaking data from The DESTINY gastric OR3 phase 2 trial evaluating relevant combination with the blockbuster ADC and HER2 and chemotherapy as first light treatment for ERR2 positive gastric cancers. This data showed promising antitumor activity and also demonstrated combinability of PRILVA from safety perspective. Overall, these ACR publications continue to reinforce our confidence in RILVAE as AZ continues to advance it along 11 phase three trials across multiple indications including the recently opened trial in gastric in combination with the Cloudin 18.2 ADC. With that, we are looking forward to the release of additional clinical data on RILVA along the year, including at the next ASCO meeting at the end of the month. As a reminder, AstraZeneca's previously estimated and non risk adjusted peak annual revenue potential of more than $5 billion for Wilve and we are eligible for additional $195 million in future regulatory and commercial milestone payments plus mid single digit tiered royalties on sales. Moving to GS0321 formerly known as COM503, our potential first in class anti L18 binding protein antibody licensed to Gileadin GS0321 represents a novel antibody approach to harness cytokine biology for the treatment of cancer, potentially overcoming the limitations of direct cytokine administration. The ongoing Phase one dosescalation trial continues to progress as we planned. As a reminder, we received to date $90 million from Gilead of his assets only eligible to receive up to $758 million in additional milestone payment plus up to double digit tiered royalties. Now to the early stage pipeline and Unigen discovery engine. Beyond our clinical assets, we continue to invest in our early stage Immuno Oncology pipeline. Unigine, our AI powered computational target discovery platform, has already discovered the targets of COM 701, COM 902 and GS 0321. We remain committed to identifying and advancing the next wave of innovative programs grounded in novel mechanisms of action designed to activate the immune system against cancer. Importantly, we have a solid financial position with a cash Runway expected into 2,029 following the December 2025 transaction with AZ through which we received $65 million in non diluted capital by monetizing only a small portion of our future RILVE royalties. Our financial stability allows us to fully focus on advancing our pipeline and reaching key value, creating milestones with both our internal and partnered programs and throughout all of this we continue to benefit from a deeply talented and highly committed Emirates Compugen. I am proud of what we have built and energized by opportunities ahead with that let me hand over to David for the financial updates before we open the floor for Q and A.

David Silverman (Chief Financial Officer)

Thank you Ewan and I would like to add my own warm welcome to Lindsay as well. It is a pleasure to have you join the compugen team, Lindsay, and we look forward to working together. I am pleased to say that we continue to advance into 2026 with a solid balance sheet and financial flexibility. Cash Runway, assuming no further cash inflows, is expected to fund our operating plans into 2029. We anticipate using this Runway to continue advancing our COM701 platinum-sensitive ovarian cancer trial, MAIA Ovarian and to support the progression of GS0321 in the clinic together with continued investment in our early stage pipeline. Now going into the details, I will start with our cash balance. As of March 31, 2026, we had approximately $134.9 million in cash, cash equivalents, short term bank deposits and investment in marketable securities. Revenues for the first quarter of 2026 were approximately $2.2 million compared to approximately $2.3 million of revenue for the comparable period in 2025. The revenues in the first quarters of 2026 and 2025 reflect the recognition of full terms of both the upfront payment and the IND milestone payments from the license agreement with Gilead. Expenses for the first quarter of 2026 were in line with our plans. R&D expenses for the first quarter of 2026 were approximately $6.9 million compared to approximately $5.8 million in the first quarter of 2025. The increase is mainly due to an increase in clinical expenses related to my ovarian trial as well as higher drug supply costs supporting our trials. Our GNA expenses for the first quarter of 2026 were approximately $2.3 million compared to approximately $2.4 million for the comparable period in 2025. For the first quarter of 2026, our net loss was approximately $7.7 million or $0.08 per basic and diluted share compared to a net loss of approximately $7.2 million or $0.08 per basic and diluted share in the first quarter of 2025. With that, I will hand over to the operator to open the call for questions.

OPERATOR

Thank you ladies and gentlemen. At this time we will begin the question and answer session. If you have a question, please press Star one. If you wish to decline from the polling process, please press star 2. If you are using speaker equipment, kindly leave the answer before pressing the numbers. Please stand by while we poll for your questions. The first question is from Diana Graybeal of Learning Partners. Please go ahead.

Diana Graybeal

Hi, thank you for the question. Lindsay, welcome. Nice to see you here. Going into asco, I wonder if you could talk about more specifically the data sets AstraZeneca is going to present with RILVE and help set the context for what we should expect to see. And are there benchmarks that we should be keeping in mind when we review the data sets?

Dr. Eran Ophir

Sure. Thanks, Dana. So we're talking about two data sets, clinical data. Obviously the actual data is not released yet and I would be cautious on setting expectations on behalf of AstraZeneca. But overall we talk about the I SPY trial in the testing RILVE, guinea orjuvant settings with Enhertu, which is by itself a blockbuster drug, which is very exciting to see these combinations. Again, I would be cautious about setting expectations, but I think looking again and this is a platform trial, so really trying to look across not a randomized study, but trying to look about Drillvir versus other data sets. The combinability is again going to be very important to show again how the FC reduce format of Rivugostamib is easier to combine with such antibody-drug conjugates. And then the second set is the GMEN Hepatobilari which is in combination with chemotherapy. And here again we'll be good to see. I think it's a bit of a longer follow up from what was reported before, so it'd be interesting to see about the long term effect, how the PFS. I'm not sure if there will be an overall survival (OS) data, but how the long term effects are shaping, including the long term safety in combination with chemo. Having in mind that there is for this trial, there's an ongoing phase three study. Ongoing. So I guess the comparison to stroke control should be with caution and still probably is going to be going to be made.

Diana Graybeal

Great, thank you.

OPERATOR

The next question is from Stefan Wolfe of Stifle. Please go ahead.

Stefan Wolfe

Yeah, good morning. Thanks for taking the questions. Maybe you can just talk a little bit about how you're thinking about disclosing future development candidates that are discovered off the Unigen platform. I think the IL-18 binding protein antibody wasn't announced until it was ready for clinical development. Is that kind of how we should expect incremental assets to emerge out of the pipeline once they're ready for an IND submission? Thanks.

Dr. Eran Ophir

Thanks, Steve. So I think it's really dependent eventually. Definitely. The biggest group in Compugen is the one which continue to work to bring additional innovative assets like COM503 which is called today GS0321 specifically for that asset. It was right for this asset and for comprehension at these times to out license it in preclinical stage. So this also influenced the stage in which we disclosed it. It was relatively early. But it doesn't mean necessarily that we have any specific guidelines that we are reporting on early assets only when it's ready for IND or only on the selection. It really depends on the actual assets on the stage of the risking in which you want to start comment and committing. So again I wouldn't learn too much from the story of IL-18 binding protein other than the fact that it was another demonstration how a computational platform can bring such innovative approaches in that case not only first in class asset but the first in class approach to high end cytokine biology for the treatment of cancer. And we are looking into different mechanisms of action (MOAs), not necessarily similar to that to bring again another innovative options that could really make difference to patients.

Stefan Wolfe

All right, thanks.

OPERATOR

The next question is from Leland Gersh of Oppenheimer. Please go ahead.

Dr. Michelle Mahler (Chief Medical Officer)

Great. Good morning. Thanks for taking our questions. Wondering if could you remind us if the MAIA Ovarian trial is that stratifying for patients who are PD-L1 or PD-1 expression status and also wanted to ask when we see the interim data in the first quarter of 2027, will given that this is an adaptive trial, would that mean that the interim data could inform some change to your design or would you simply keep going as planned? Thank you. Thank you Leland. I think Michel can take this one. I'm happy to take this one. Yeah, so. So the myovarian trial actually is not stratified according to PD-L1 subgroup. We are stratified by second versus third line of treatment and in Q1 2027 when it reads out we have multiple options ahead of us in terms of adjustments to the trial so we would consider adding additional arms and a lot of it's going to depend on the totality of the data and also plans to towards engaging with the regulators and steps towards a pivotal trial.

Dr. Eran Ophir

Additional comment a little about the PD L1 certification. I would like to remind you that PVRIG probably because of its unique biology we saw in other indications specifically in ovarian cancer we saw responses across PD L1 positive and PD L1 negative patients. So for now we didn't see not necessarily. I like for other checkpoints that the PDL1 subset is the one responding to COM 701 and again I think this is because that's unique biology very much differentiated from PD-L1 to PD-1. So again, not necessarily PD L1 certification is the critical certification here.

Leland Gersh

Thanks so much, Ron. Thank you.

OPERATOR

The next question is from RK of HC Wainwright. Please go ahead.

Dr. Michelle Mahler (Chief Medical Officer)

Thank you. Thank you Eran for taking my questions. So a couple more questions on the ovarian cancer trial. So now that you have all the sites active, what is any commentary on the enrollment status itself? And also because this is an event driven trial, any commentary on the required events that needs to happen for the interim analysis? And the third question is what are you assuming for the control on progression-free survival (PFS)? And what sort of a hazard ratio do you need to see to consider that as a win? Thanks, RK Michel, do you want to take it? Yeah, sure. So firstly, with respect to our enrollment, we're not commenting at this point in time, but I will say to you that we are on track for our interim analysis as planned in the first quarter of 2027, and our participating investigators have a high level of engagement and are working really well with us regarding the events and the benchmarking. So the trial is an exploratory trial. And so at this point in time we don't know the full magnitude of benefit, but the benchmark for the control arm from prior clinical trials in the second line and third line of maintenance. In those trials where patients did not get treatment, the same patient population had a benchmark of approximately 5.5 months, although there was a range. So in some studies it was as low as 3.8 months and others as high as 5.8 months. So we're hoping to be able to show that there is meaningful single agent clinical activity of COM701. And we've hypothesized that we would like to see a three month or greater improvement over the benchmark progression-free survival (PFS).

RK

Thank you. Thanks for taking the question.

OPERATOR

This concludes the Q and A session and Compugen's investor conference call. Thank you for your participation.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.