Compugen Ltd. (CGEN) Stock Analysis

Compugen Ltd. (CGEN) Healthcare & Pipeline Overview

Compugen Ltd. specializes in immuno-oncology, developing a diverse pipeline of therapeutic candidates, including anti-PVRIG and anti-TIGIT antibodies, positioning itself at the forefront of innovative cancer treatments.

What Is the Investment Thesis for CGEN?

The company's collaboration agreements with industry leaders like Bayer and Bristol-Myers Squibb enhance its research capabilities and market reach. With a market capitalization of $235M and a low P/E ratio of 6.55, Compugen is positioned for potential growth as it advances its clinical trials and seeks regulatory approvals. The company's strong gross margin of 88.1% reflects its operational efficiency, while its profit margin of 48.0% indicates robust financial health. Key risks include the competitive landscape of immuno-oncology and the inherent uncertainties of clinical trial outcomes, which could impact future growth. However, the strategic partnerships and innovative pipeline provide a solid foundation for long-term value creation.

Based on FMP financials and quantitative analysis

CGEN Key Highlights

Market capitalization of $235M reflects growth potential in the biotechnology sector.

• P/E ratio of 6.55 indicates valuation attractiveness compared to industry peers.
• Profit margin of 48.0% demonstrates strong operational efficiency.
• Gross margin of 88.1% exceeds industry averages, highlighting effective cost management.
• Beta of 2.80 suggests higher volatility, which may appeal to risk-tolerant investors.

Who Are CGEN's Competitors?

CGEN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CGEN's Key Strengths?

Innovative pipeline with multiple Phase I clinical studies.

• Strong partnerships with leading pharmaceutical companies.
• High gross margin reflecting operational efficiency.
• Expertise in immuno-oncology and antibody-based therapeutics.

What Are CGEN's Weaknesses?

Clinical-stage status may limit immediate revenue generation.

• Dependence on successful outcomes of clinical trials.
• Limited market presence compared to larger competitors.
• No current revenue from product sales.

What Could Drive CGEN Stock Higher?

CGEN catalyst: Results from Phase I clinical studies for COM701 and COM902 expected in the next 12 months.

• Collaboration with Bristol-Myers Squibb to evaluate COM701 in combination with Opdivo.
• Potential regulatory submissions for advanced therapies as clinical trials progress.
• Development of early-stage myeloid programs in collaboration with academic institutions.
• Expansion of partnerships to enhance research and development capabilities.

What Are the Key Risks for CGEN?

Financial-distress signal — its Altman Z-Score of 0.40 sits in the distress zone (elevated bankruptcy risk).

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Dependence on successful clinical trial outcomes for future product development.
• Intense competition in the biotechnology sector may impact market share.
• Regulatory challenges could delay product approvals and market entry.
• Market volatility may affect funding and operational stability.

What Are the Growth Opportunities for CGEN?

• Expansion of Immuno-oncology Pipeline: Compugen's ongoing clinical trials for COM701 and COM902 represent significant growth opportunities. The global immuno-oncology market is projected to grow at a CAGR of 14.5% from 2022 to 2027, providing a favorable environment for Compugen's innovative therapies targeting solid tumors and advanced malignancies.
• Strategic Collaborations: The partnerships with Bayer Pharma AG and Bristol-Myers Squibb enhance Compugen's research capabilities and market access. These collaborations enable the company to leverage established expertise and resources, potentially accelerating the development and commercialization of its therapeutic candidates.
• Regulatory Approvals: As Compugen advances its clinical trials, successful regulatory approvals for its therapies could significantly boost its market presence. The FDA and EMA's increasing focus on expedited pathways for innovative cancer treatments may facilitate faster access to the market for Compugen's products.
• Emerging Myeloid Targets: Compugen's early-stage immuno-oncology programs focusing on myeloid targets present additional growth avenues. The myeloid checkpoint inhibition market is gaining traction, and Compugen's research in this area could position it as a leader in developing novel therapies.
• Global Market Expansion: With its headquarters in Israel and operations in the U.S. and Europe, Compugen is well-positioned to tap into international markets. The growing demand for innovative cancer therapies worldwide presents an opportunity for Compugen to expand its reach and drive revenue growth.

What Threats Does CGEN Face?

• Intense competition in the biotechnology and oncology sectors.
• Regulatory hurdles and uncertainties in clinical trial outcomes.
• Market volatility affecting funding and investment.
• Rapidly evolving technology and treatment paradigms.

What Are CGEN's Competitive Advantages?

• Strong pipeline of innovative immuno-oncology therapies.
• Established collaborations with leading pharmaceutical companies.
• Expertise in antibody-based therapeutics and immuno-oncology research.
• Focus on early-stage myeloid targets, differentiating from competitors.

What Does CGEN Do?

Founded in 1993 and headquartered in Holon, Israel, Compugen Ltd. is a clinical-stage therapeutic discovery and development company dedicated to advancing immuno-oncology therapies. The company has built a strong pipeline of therapeutic candidates aimed at treating various solid tumors and advanced malignancies. Compugen's flagship products include COM701, an anti-PVRIG antibody currently in Phase I clinical studies for solid tumors; COM902, targeting TIGIT, also in Phase I studies; and Bapotulimab, which targets ILDR2 and is undergoing Phase I trials. Additionally, the company is developing AZD2936, a novel bispecific antibody targeting both TIGIT and PD-1, currently in Phase I/II studies for advanced non-small cell lung cancer. Compugen has established collaborations with major pharmaceutical companies, including Bayer Pharma AG and Bristol-Myers Squibb, to enhance its research and development capabilities. These partnerships are critical for evaluating the safety and efficacy of its therapies in combination with established treatments. The company's focus on innovative antibody-based therapeutics highlights its commitment to addressing unmet medical needs in oncology. With a workforce of 74 employees, Compugen is strategically positioned to leverage its research capabilities and collaborations to drive future growth and expand its market presence across Israel, the United States, and Europe.

What Products and Services Does CGEN Offer?

• Research and develop therapeutic candidates for cancer treatment.
• Focus on immuno-oncology, targeting solid tumors and advanced malignancies.
• Conduct Phase I clinical studies for multiple therapeutic antibodies.
• Collaborate with major pharmaceutical companies for research and development.
• License agreements for developing bi-specific and multi-specific immuno-oncology products.
• Engage in research collaborations with academic institutions for innovative therapies.

How Does CGEN Make Money?

• Generate revenue through partnerships and collaborations with pharmaceutical companies.
• Develop and commercialize proprietary therapeutic candidates.
• Leverage licensing agreements for antibody-based therapeutics.
• Focus on clinical trials to advance product candidates towards market approval.
• Engage in research collaborations to enhance product development capabilities.

What Industry Does CGEN Operate In?

The biotechnology industry is experiencing rapid growth, driven by advancements in immuno-oncology and personalized medicine. The global immuno-oncology market is projected to reach $110 billion by 2027, with increasing investments in research and development. Compugen Ltd. operates within this dynamic landscape, competing with other biotech firms focused on innovative cancer therapies. As the demand for effective cancer treatments rises, companies like Compugen are well-positioned to capitalize on emerging opportunities, particularly in the development of novel antibody-based therapeutics.

Who Are CGEN's Key Customers?

• Pharmaceutical companies seeking innovative therapeutic solutions.
• Healthcare providers looking for advanced cancer treatment options.
• Research institutions collaborating on immuno-oncology studies.
• Patients with solid tumors and advanced malignancies requiring new therapies.

Compugen Ltd. Financial Trajectory

Compugen Ltd. (CGEN) reported $2.6M in revenue for Q2 FY2026, reflecting 19.6% growth compared to the prior quarter. The company recorded a net loss of $7.0M, with diluted EPS of $-0.07. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Healthcare. Across the four most recent quarters, CGEN averaged $0.09 in diluted EPS.

Company Profile

Compugen Ltd. operates in the Biotechnology industry within the Healthcare sector. It is headquartered in Holon, IL. The company is led by CEO Eran Ophir. CGEN has traded publicly since 2000.

How Compugen Ltd. Is Valued

Compugen Ltd. carries a market capitalization of $235M, placing it in the micro-cap category. Analyst price targets span from $5.00 to $5.00, with a consensus of $5.00. At the current price of $2.48, that implies approximately 101% upside potential.

Return on equity for Compugen Ltd. stands at 45.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 14.7%, showing how much profit it generates from its asset base. A current ratio of 6.23 indicates the company holds enough short-term assets to cover its near-term obligations.

Compugen Ltd.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.40 places it in the distress zone, a signal of elevated financial risk.

Compugen Ltd. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 80.8% above estimates on average.

Over the past six months, Compugen Ltd. insiders filed 60 SEC Form 4 transactions — 25 sales and 35 purchases. On net that is roughly 571K shares acquired (about $1.2M) — insiders putting money in tends to read as conviction.

CGEN Financials

CGEN Latest News

CGEN Analyst Consensus

CGEN MoonshotScore

Latest Compugen Ltd. Analysis

Compugen Ltd. Healthcare Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources