Compugen's Q4 2024 Earnings Call: Unraveling Contradictions in Rilvegostomig Trials and Ovarian Cancer Study Design

These are the key contradictions discussed in Compugen's latest 2024 Q4 earnings call, specifically including: Rilvegostomig's inclusion in AstraZeneca's trial, Study Design and Enrollment Expectations for the Ovarian Cancer Study, and Ovarian Cancer Study Design and Biomarkers:



Commercial Partnership and Revenue Growth:
- Compugen reported approximately $27.9 million in revenues for the year ended December 31, 2024, compared to approximately $33.5 million in revenues for each of the comparable periods in 2023.
- The decrease in revenue was primarily due to the classification of expenses related to GS-0321 to cost of revenues and lower CMC and IND enabling activities, partially offset by increases in clinical expenses.
- The company received significant milestone payments from Gilead and AstraZeneca, maintaining a strong cash position.

Clinical Program Progress and Expansion:
- Compugen advanced the development of COM701 as a maintenance treatment option for patients with platinum-sensitive ovarian cancer, initiating an adaptive platform trial in Q2 2025.
- The company's partner, AstraZeneca, initiated seven Phase III clinical trials with rilvegostomig, showing promising efficacy and a manageable safety profile in lung and gastrointestinal cancers.
- This expansion is driven by the potential of these clinical programs to open new opportunities and generate future milestone payments and royalties.

Financial Position and Cash Runway:
- Compugen ended 2024 with approximately $103.3 million in cash, cash equivalents, short-term bank deposits, and investments in marketable securities.
- The cash balance includes the $60 million upfront payment from Gilead and a $30 million milestone payment, with a cash runway expected to last into 2027.
- The solid financial position allows for continued investment in clinical trials and early-stage research programs.

TIGIT Antibody and Rilvegostomig Development:
- Compugen's Fc inactive TIGIT antibody, COM902, is a potential pivotal component in AstraZeneca's rilvegostomig, with seven Phase III trials initiated, potentially representing a significant revenue source.
- AstraZeneca's broad development strategy for rilvegostomig aims to replace existing PD-1 or PD-L1 inhibitors, with early data expected in 2025 on combinations with ADCs.
- This effort is driven by the potential of TIGIT antibodies to enhance immunotherapy in various cancers.