Pfizer Inks Deal with Compugen

Today Compugen announced that it has entered into a collaboration agreement with Pfizer for the predictive discovery by Compugen of therapeutic peptide product candidates for three drug targets of interest to Pfizer.

The significance of the deal:

1. The deal is with none other than Pfizer and provides important validation of Compugen's predictive discovery platforms, including at least one platform that has yet to be disclosed.

2. This is a "discovery on demand" agreement, pursuant to which Compugen is to provide Pfizer with peptides required for specific targets of interest within a mere matter of months.

3. Pfizer is paying Compugen for its R&D, and if successful, the peptide therapeutic candidates could result in substantial milestone and royalty payments to Compugen. (Pursuant to the agreement, Compugen is not permitted to disclose additional financial details.)

4. The deal focuses on a Compugen "sweet spot", i.e. therapeutic peptides, an area where Compugen possesses appreciable knowledge and capabilities.

5. The announcement is in keeping with Compugen's previously announced business model of entering into R&D arrangements with leading pharma and diagnostic companies.

[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.]