HOLON, Israel - Compugen Ltd . (NASDAQ: NASDAQ:CGEN) (TASE: CGEN), engaged in the development of cancer immunotherapies, has shared findings in Cancer Immunology Research about its therapeutic candidate COM503. The study, presented at the American Association for Cancer Research annual meeting this week, highlights COM503's potential to stimulate the immune system and produce anti-tumor effects by targeting the IL-18 pathway.
Anat Cohen-Dayag, Ph.D., President and CEO of Compugen, emphasized the increasing interest in the IL-18 pathway within cancer immunology. Compugen's computational discovery work uncovered that IL-18 binding protein (BP (NYSE:BP)), which naturally inhibits IL-18, is often found in high levels in cancer patients, potentially contributing to immune resistance. COM503, developed in collaboration with Gilead Sciences (NASDAQ:GILD), is designed to block the interaction between IL-18 and IL-18BP, releasing the activity of endogenous IL-18 in the tumor microenvironment.
Eran Ophir, Ph.D., Chief Scientific Officer at Compugen, explained that COM503's advantage lies in its ability to act locally within the tumor environment, potentially offering a broader therapeutic window compared to systemic IL-18 delivery. The company is moving towards an Investigational New Drug (IND) filing and plans to initiate a Phase 1 study to evaluate the safety and tolerability of COM503.
Compugen's portfolio includes two proprietary product candidates: COM701, targeting PVRIG, and COM902, targeting TIGIT, both developed for the treatment of solid tumors. Additionally, the company has a partnered program, rilvegostomig, a PD-1/TIGIT bispecific antibody, in Phase 3 development by AstraZeneca (NASDAQ:AZN).
The company's approach to drug discovery, which relies on computational methods to identify new targets, is unproven clinically, and the development process bears inherent risks. Compugen's business model is heavily dependent on collaborations, and the company faces uncertainties related to clinical trials and market conditions, including the impacts of regional conflicts such as the ongoing "Swords of Iron" war.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties, as detailed in Compugen's filings with the SEC.
InvestingPro Insights
As Compugen Ltd. (NASDAQ: CGEN) advances its cancer immunotherapy candidates, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Compugen holds a market capitalization of $209.01 million, reflecting its current valuation within the biotechnology sector. Despite the challenges inherent in drug development, the company boasts an impressive gross profit margin of 94.01% for the last twelve months as of Q4 2023, signaling its potential to generate significant revenue relative to its sales.
Compugen's financials also reveal a substantial revenue growth of 346.12% for the same period, indicating an expanding operational scale. However, the company is not yet profitable, with a negative P/E ratio of -10.95, adjusted to -11.13 for the last twelve months as of Q4 2023. This aligns with the insights from InvestingPro that analysts do not anticipate Compugen will be profitable this year. Nevertheless, the stock price has experienced a large uptick over the last six months, with a total return of 167.82%, showcasing investor optimism about the company's future prospects.
The two InvestingPro Tips for Compugen that stand out are its strong gross profit margins and its ability to hold more cash than debt on its balance sheet. These factors could provide the company with a solid foundation to navigate the costly process of drug development and clinical trials. For a deeper dive into Compugen's financials and market performance, including additional tips, visit InvestingPro. Readers interested in accessing the full range of InvestingPro insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where 11 more tips are available for Compugen.
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