HOLON, Israel - Compugen Ltd . (NASDAQ:CGEN) (TASE:CGEN), an immunotherapy company specializing in cancer treatment, is set to receive a $5 million milestone payment from AstraZeneca (LSE/STO/NASDAQ:AZN) following the initiation of a Phase 3 trial for rilvegostomig. The trial is a crucial step in evaluating the drug as a first-line treatment for a specific type of lung cancer.
The payment was triggered by the dosing of the first patient in the TROPION-Lung10 trial, which assesses rilvegostomig both as a standalone therapy and in conjunction with datopotamab deruxtecan, a TROP2-directed antibody drug conjugate developed by AstraZeneca and Daiichi Sankyo (TSE:4568). The study targets patients with advanced non-squamous non-small cell lung cancer exhibiting high PD-L1 expression and is devoid of actionable genomic alterations.
Rilvegostomig, derived from Compugen's anti-TIGIT antibody COM902, is a bispecific antibody designed to have reduced Fc effector function, which is intended to prevent the depletion of CD8+ T cells. The trial is sponsored by AstraZeneca in partnership with Daiichi Sankyo and plans to enroll around 675 patients across more than 14 countries.
Compugen's collaboration with AstraZeneca began in 2018 when it granted an exclusive license to AstraZeneca for the development of bispecific and multispecific antibodies using its monospecific antibodies that target TIGIT. To date, Compugen has received $35.5 million in upfront and milestone payments and could receive up to $200 million in additional milestones, plus royalties on future sales.
This development follows Compugen's receipt of a $10 million milestone payment for the initiation of the ARTEMIDE-Biliary01 Phase 3 trial, which evaluates rilvegostomig in biliary tract cancer. The ARTEMIDE-Biliary01 trial is currently assessing the efficacy and tolerability of rilvegostomig compared to placebo in combination with chemotherapy in post-surgical resection patients.
The advancement of rilvegostomig into a second Phase 3 trial underscores Compugen's strategy to broaden the assessment of its pipeline and potential for future payments and royalties. This information is based on a press release statement from Compugen Ltd.
InvestingPro Insights
As Compugen Ltd. (NASDAQ:CGEN) (TASE:CGEN) progresses with its immunotherapy development, notably with the recent milestone from AstraZeneca, investors have their eyes on the company's financial metrics and growth prospects.
Compugen's strategic focus on cancer treatment is underpinned by a robust financial position, as indicated by an InvestingPro Tip that highlights the company's cash reserves exceeding its debt. This is a key factor for investors considering the financial stability and long-term viability of the company in the highly capital-intensive biotech industry.
Moreover, another InvestingPro Tip suggests that analysts are optimistic about Compugen's future, expecting the company to become profitable this year. This forecast aligns with the company's recent advancements in clinical trials, which could potentially lead to significant milestone payments and future royalties, enhancing its revenue streams.
From a data standpoint, Compugen's impressive revenue growth of 380.24% in the last twelve months as of Q1 2024, as reported in InvestingPro Data, underscores the company's rapid expansion in its sector. Moreover, a gross profit margin of 88.6% over the same period reflects the company's efficiency in converting sales into profit, a critical indicator of its operational success. Lastly, the substantial 124.53% return on the company's stock price over the past year suggests strong investor confidence in Compugen's trajectory.
For those interested in a deeper dive into Compugen's financials and future outlook, there are 10 additional InvestingPro Tips available at: https://www.investing.com/pro/CGEN. These tips provide valuable insights for investors looking to make informed decisions. Additionally, readers can use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription to InvestingPro, giving them access to exclusive data and analysis that can guide their investment strategies.
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