What is the current valuation of Compugen’s COM701+COM902

The revenue for COM701+COM902 is expected to reach an annual total of $86 mn by 2039 globally based off GlobalData’s Expiry Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.

COM701+COM902 Overview

COM-701 is under development for the treatment of solid tumors including colorectal cancer, non-small cell lung cancer, ovarian cancer, triple negative breast cancer, multiple myeloma, PD1 refractory or relapsing head and neck squamous cell carcinoma including oral cavity, oropharynx, larynx, hypopharynx, nasopharynx, paranasal sinus, nasopharyngeal, non-small cell lung cancer, colorectal cancer, endometrial cancer, primary peritoneal cancer and fallopian tube cancer. The drug candidate is a high affinity humanized IgG4 mAb. It is administered intravenously. It acts by targeting CGEN-15029/PVRIG, a B7/CD28 like immune checkpoint protein. The drug candidate is developed based on antibody therapeutic targets discovery platform and protein family members discovery platform.

Compugen Overview

Compugen is a clinical-stage drug discovery and development company that develops medicines for immuno-oncology and autoimmune diseases. The company’s pipeline comprises COM701 and PVRIG, BAY 1905254, COM902, and TIGIT. Its drug development process includes target discovery, target validation and predictive discovery programs. Compugen drug programs finds therapies to treat metastatic microsatellite stable colorectal cancer, platinum resistant ovarian cancer, advanced and metastatic non-small cell lung cancer (NSCLC) and metastatic gastric cancer. It operates in Israel, the US and Canada. Compugen is headquartered in Holon, Tel Aviv, Israel.

The company reported revenues of (US Dollars) US$7.5 million for the fiscal year ended December 2022 (FY2022), an increase of 25% over FY2021. The operating loss of the company was US$35.4 million in FY2022, compared to an operating loss of US$35.1 million in FY2021. The net loss of the company was US$33.7 million in FY2022, compared to a net loss of US$34.2 million in FY2021.

For a complete picture of COM701+COM902’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.