Compugen Ltd. (CGEN) Share Price Surges 12.08% on AstraZeneca Royalty Deal

The share price rose to its highest level so far this month today, with an intraday gain of 12.08%.

Compugen Ltd. (NASDAQ: CGEN) surged after securing a non-dilutive royalty monetization deal with AstraZeneca for its TIGIT-targeting bispecific antibody rilvegostomig. The agreement includes an upfront $65 million payment and a potential $25 million milestone upon FDA BLA acceptance, extending Compugen’s cash runway to 2029.

The transaction, which retains mid-single-digit royalties on future sales and additional milestones, avoids shareholder dilution and reinforces the company’s strong liquidity position, with a current ratio of 4.38. The deal also aligns with Compugen’s proprietary Fc-reduced antibody technology, differentiating its pipeline in the competitive immuno-oncology sector.

While Q3 2025 revenue of $1.9 million fell short of estimates, the AstraZeneca agreement overshadowed short-term concerns, validating rilvegostomig’s potential. The drug, in 11 Phase 3 trials, could generate long-term value for Compugen, which retains key royalties and milestones. Analysts highlight the company’s robust pipeline, including COM902 and its AI-driven Unigen platform, as growth drivers. However, risks remain tied to clinical outcomes and AstraZeneca’s commercial success. The deal underscores Compugen’s strategic focus on non-dilutive financing, positioning it as a high-growth biotech with a balance sheet poised to support future developments.

In reviewing the broader implications of the deal, investors have started to incorporate the new milestones into their valuation models. A comprehensive look at Compugen’s equity performance over the past year reveals the transformative impact of this partnership. The recent price surge aligns with a historically strong RSI rebound and a shift in market sentiment toward biotech innovation and partnership-driven growth. As such, Compugen’s forward-looking metrics continue to attract attention from institutional and retail investors alike.