Drug discovery company Compugen Ltd. (Nasdaq: CGEN; TASE:CGEN) today published an off-the-shelf prospectus to raise $20 million.
Compugen's last public offering was in 2000 and since then the company has been proud of not having to raise capital.
In its formative years, the company recorded small revenues from its drug discovery services. However, because this is a small market the company moved onto its current model of developing its own molecules until the end of pre-clinical trials and then signing collaborative development agreements with large pharmaceutical companies.
Since changing its business model, Compugen has not recorded any significant revenue, although the company has signed a number of agreements with partners to develop its products for royalty and milestone payments. However, none of these products has yet earned a milestone payment.
The company's declared target is to sign at least one cooperation agreement each year.
Meanwhile, Compugen's cash reserves are low and two months ago the company sold its stake in its spin-off Evogene Ltd. (TASE:EVGN) for $3.6 million. The company has said this sum will last until the middle of 2010.
Compugen's share rose 3.75% to $2.57 during morning trading on Nasdaq, giving a market cap of $73.35 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 12, 2009
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