Compugen: A Memorable Day

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.]

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.]