On Monday, Oppenheimer initiated coverage on Compugen (TASE:CGEN) shares (NASDAQ:CGEN) with an Outperform rating and set a price target of $4.00. The research firm's analysts highlighted the company’s focus on oncology and its portfolio of immunotherapy candidates as reasons for the positive outlook.
Compugen's lead candidate, COM701, is entering Phase 2 development as an early-line maintenance therapy for ovarian cancer. The candidate has already shown promise in late-stage patients who had exhausted other treatment options. This advancement is seen as a key driver for Compugen's stock performance.
Additionally, Compugen's collaboration with AstraZeneca (NASDAQ:AZN) has produced the anti-PD-1/TIGIT bispecific antibody rilvegostomig, which is leveraging Compugen's technology and has entered five Phase 3 trials targeting lung and biliary tract cancers. AstraZeneca estimates that rilvegostomig could potentially reach $5 billion in peak sales.
Another significant collaboration is with Gilead Sciences (NASDAQ:GILD) on the immune modulator COM503, which has recently entered clinical trials. This partnership further emphasizes the strength of Compugen's computational discovery platform in identifying novel immunotherapy candidates.
The firm also noted that Compugen's current cash resources are expected to fund operations into 2027, providing a substantial financial runway for the company's research and development activities.
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