Drug discovery company Compugen Ltd. (Nasdaq: CGEN; TASE:CGEN) today published its financial report for the second quarter of 2009.
Included in these results is the financial impact of Compugen’s sale during the quarter of 1 million of the 2.15 million Evogene Ltd. (TASE:EVGN) shares previously held by Compugen, for net proceeds of $3.6 million.
Compugen's revenue for the second quarter of 2009 was $225,000 compared with $40,000 for the second quarter of 2008. However, revenue for the first half of 2009 was also $225,000, compared with $321,000 for the corresponding period of 2008.
Compugen co-CEO Martin Gerstel said, “Last week we disclosed the positive results achieved for CGEN 25017 in a retinopathy disease model. This announcement was the latest in a series of recent announcements documenting Compugen’s successful development of new platforms, discovery of new product candidates, and broader and deeper in vivo validations of a rapidly growing inventory of attractive product candidates in key areas of industry interest."
He added that recently the healthcare industry has turned away from its "prior strong skepticism that Compugen, or any organization, could successfully use computer models to predict, completely in silico, novel molecules and their anticipated in vivo activities.”
Reflecting the sale by Compugen during the second quarter of a portion of its Evogene shares, Compugen reported other income of $3.6 million for the second quarter of 2009, compared with $11,000 for the second quarter of 2008. Other Income for the first half of 2009 was $3.7 million compared with $27,000 for the corresponding period of 2008.
Consequently Compugen’s net profit for the second quarter of 2009 was $2.4 million (including a non-cash expense of $350,000 related to stock based compensation) or $0.08 per share, compared with a net loss of $3 million (including a non-cash expense of $416,000 related to stock based compensation), or $0.10 per share, for the corresponding quarter of 2008. The net profit for the first six months of 2009 was $63,000 (including a non-cash expense of $629,000 related to stock based compensation), or $0.01, compared with a net loss of $5.5 million (including a non-cash expense of $743,000 related to stock based compensation), or $0.19 per share, for the corresponding quarter in 2008.
Compugen had R&D expenses of $1.5 million for the second quarter of 2009, compared with $2.4 million for the corresponding quarter of 2008. This is the company's largest expense, representing 70% of total operating expenses. These amounts are before the deduction of governmental and other grants, which totaled $368,000 for the second quarter of 2009, compared with $169,000 for the corresponding quarter in 2008.
As of June 30, 2009, Compugen had $6.5 million in cash and cash equivalents, not including the 1.15 million Evogene marketable shares continuing to be owned by the company. With the inclusion of the current market value for these Evogene shares, Compugen expects to have sufficient resources to meet its expected cash requirements through early 2011, assuming no significant milestones, upfront fees, or additional capital from any other source was obtained prior to such time.
Published by Globes [online], Israel business news - www.globes-online.com - on July 28, 2009
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