Yesterday was a remarkable day for Compugen.
The significance of Compugen's agreement with Pfizer? Answer: Name another company that can "design" for Pfizer peptide therapeutic candidates for specified targets within mere months? It is no accident that Pfizer has chosen to work with Compugen.
Moreover, Compugen is not a "one trick pony". One need only review its recent press releases to understand the broad applicability of its science and discovery platforms, which extends far beyond this agreement with Pfizer.
Compugen's science is the product of a lonely 10-year journey, building an understanding of biological phenomena on the molecular level. There were no shortcuts. Critical mass is now resulting in remarkable early stage product candidates meant to validate their discovery platforms. More important, the discovery platforms are intended for "discovery on demand", i.e. to provide the pharma industry with a bountiful crop of new product candidates to meet their very specific needs at a time when Big Pharma's pipelines are going dry.
Compugen, although increasingly known to the pharma industry, has gone ignored by the financial community. Perhaps this changed yesterday, when more than 25 million Compugen shares were traded.
The arrival yesterday of the day traders? I would wager that few of them took the time to read about Compugen's predictive science. They arrived in an instant and will depart just as quickly, but when members of their families become ill with life threatening diseases - an unfortunate reality that inevitably affects all of us - I hope they will remember the day when they rushed in and out of the shares of this little company, whose mission is to be the world leader in the discovery of therapeutic and diagnostic product candidates.
Long after the day traders are gone, Compugen will continue its business of striving to bring significant therapeutics, diagnostics and hope to persons suffering from cancer, life threatening cardiovascular ailments and crippling inflammatory disease.
For many, this is a time of year for self-reflection and spiritual renewal, and I wish all those who read my blog happy holidays.
[As noted in prior blog entries, I am a Compugen shareholder, this blog entry is not a recommendation to buy or sell Compugen shares, and in mid-September 2009 I began work as a part-time external consultant to Compugen. The opinions expressed herein are mine and are based on publicly available information. This blog entry has not been authorized or approved by Compugen.]
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For another positive view of Compugen that appeared today, you may want to read:
ReplyDeleteCompugen-Pfizer Deal: What Biotech 'Dreamers' Can Accomplish
http://seekingalpha.com/article/179775-compugen-pfizer-deal-what-biotech-dreamers-can-accomplish-?source=yahoo
Jeff, I was wondering if you would care to comment on compugens recent raising of money. On the one hand it gives the company much more flexibility and it was done very cleverly. On the other hand one might question whether the stock was "hyped" in order to raise funds and that monitization of the company's products is still distant.
ReplyDeleteBurt
Burt, thanks for your message.
ReplyDeleteRe monetization, I think you will find your answer in today's press release from the company.
"Hype"? I personally would not work as a consultant for a company trying to "hype" its shares. Moreover, I think you should ask yourself whether an agreement with Pfizer can be deemed "hype". Or whether the earlier agreement with Bayer can be deemed "hype". Or whether Compugen's scientific announcements, citing world renowned experts, can be deemed "hype". You might also want to examine the sterling reputations of the company's management.
The answer should be obvious.
Jeff, thanks for your reply. I knew the answer and completely agree but I thought the question should be asked. Thanks again for your commentary it is very helpful. We should have an exciting year.
ReplyDeleteRegards,
Burt (suejenseth)
Thank you, Burt. I also look forward to 2010 and feel privileged to be able to interact with their scientists.
ReplyDeleteHow did you ever learn about Compugen?
Jeff, I actually had a friend mention it to me over 5 years ago I did a little dabbling in it a trade in and one out nothing much. For whatever reason I still followed it and when the Merck deal was announced became intrigued. I listened to the phone calls and though I do not truly understand the science I did understand the financial model which I believe is brilliant. Folks like yourself kept me interested. I should mention one other thing about 18 months ago I came across an article in the financial times by Nissim Taleb the author of the black swan.
ReplyDeletehttp://www.ft. com/cms/s/ 0/b735787c- 5d9b-11dd- 8129-000077b0765 8.html
I forwarded it on to the company and Mr. Gerstel responded to me. I was pleased that he took the time to write a small share holder (now I am happy to say I own much more) and I was very impressed with his response. I believe the company will do wonderful things for mankind and while it is at it I expect will make us a lot of money.
Regards,
Thanks. I will mention this to Martin when I next speak with him. Martin is indeed a visionary whom I can only describe in superlatives.
ReplyDelete