Compugen Ltd. (CGEN) Earnings

Management highlights

- Lead In-Home Program (COM701): * The myOvarian adaptive platform trial, evaluating COM701 as maintenance monotherapy for second/third-line relapsed platinum-sensitive ovarian cancer, is progressing on track for an interim PFS analysis in Q1 2027. * Based on recent external trial data in more heavily pretreated platinum-sensitive ovarian cancer patient populations, management estimates the placebo control arm median PFS to be ~4 months. Clinically meaningful success for the interim analysis is defined as COM701 achieving a median PFS of at least 6 months. * The trial is exploratory, not statistically powered for registration, but positive PFS data could support a future registration path and combination development for COM701 across ovarian cancer and other indications. - Partnered Programs: * Rilvorigostomib (PD-1/TIGIT bispecific, TIGIT component from Compugen's COM902 program, partnered with AstraZeneca): AZ initiated a new Phase 3 trial in adjuvant high-risk muscle-invasive urothelial carcinoma, combining rilvorigostomib with its approved TROP2 ADC datopotamab deruxtecan. Updated ASCO 2026 data in first-line advanced biliary tract cancer showed a 16.8-month median overall survival (compared to <13 months historical control), with manageable safety, supporting continued development. Compugen remains eligible for $195 million in future milestones plus mid-single-digit tiered royalties. * GS0321 (anti-IL-18 binding protein antibody, partnered with Gilead): The ongoing Phase I dose escalation trial (testing monotherapy and combination with PD-1 inhibitors) continues to progress as planned. Compugen has received $90 million to date and is eligible for up to $768 million in additional milestones plus single-digit to low double-digit tiered royalties. - Platform and Early Pipeline: * Compugen's 10+ year-old AI/ML-powered Unigen discovery platform, which identifies novel immuno-oncology targets and pathways, has generated all of the company's clinical-stage assets (COM701, COM902, GS0321). The company continues to invest in advancing next-generation immuno-oncology innovation.

Guidance

- The interim analysis for the myOvarian COM701 trial remains on track for Q1 2027, with no change to the previously communicated timeline despite revised placebo control arm assumptions. Readout will occur only once the data is sufficiently mature. - With $125.3 million in cash as of June 30, 2026, the company's projected cash runway (assuming no future cash inflows from milestones or partnerships) extends into 2029, enough to fund ongoing operating plans including the myOvarian trial, GS0321 clinical progress, and early pipeline investment. - AstraZeneca's formal guidance for Phase 3 readouts of rilvorigostomib is after 2027, with potential earlier interim analyses possible.

Segment performance

Compugen is a clinical-stage biotech focused on immuno-oncology, with no distinct product segments reporting separate revenue. All reported revenue is derived from milestone and upfront payment recognition under collaboration and licensing agreements. For Q2 2026, total company revenue was $2.6 million, up 100% from $1.3 million in Q2 2025. R&D expenses for the full company were $6.3 million (73.3% of total Q2 2026 expenses), up from $5.6 million in Q2 2025. G&A expenses for the full company were $2.3 million (26.7% of total Q2 2026 expenses), up slightly from $2.2 million in Q2 2025. Total net loss for Q2 2026 was $7 million ($0.07 per basic/diluted share), down from a $7.3 million net loss ($0.08 per share) in Q2 2025. As of June 30, 2026, total cash, cash equivalents, short-term deposits and marketable securities were $125.3 million.

Risks & headwinds

- Forward-looking statements regarding trial timelines, clinical success, milestone achievement, and cash runway are subject to significant uncertainty, and actual results may differ materially from current expectations. Additional risk factors are detailed in the company's most recent Form 20-F filing with the SEC. - The myOvarian trial is exploratory and not powered to demonstrate a statistically significant treatment difference, so it may not yield definitive results to support registration. - Clinical trial success is not guaranteed; even promising early signals from partnered programs require longer follow-up and confirmatory Phase 3 data to validate clinical benefit.

Analyst Q&A

• Q: Why was the myOvarian placebo control arm median PFS assumption revised to ~4 months, and how confident is management in this new estimate given differences in patient populations from the cited external trials? /

  A: The two cited European trials enrolled more heavily pretreated patients (no cap on prior lines of treatment, allowed patients with liver metastases, and included patients who received multiple prior lines of bevacizumab/PD-1/PD-L1 inhibitors) compared to myOvarian. Their placebo arms had a median PFS of ~2.8 months, while older historical data from original registration trials had a benchmark of ~5.5 months, so management adjusted to a midpoint estimate of 4 months. Since the trial is blinded, management cannot confirm the actual placebo arm PFS yet, and the ultimate comparison of blinded on-trial data between COM701 and the on-trial placebo arm is what will drive conclusions, not pre-trial assumptions.

• Q: Can you confirm GS0321 is dose escalating both as monotherapy and in combination with PD-1 inhibitors, and when might dose escalation data be disclosed? /

  A: The trial is indeed conducting dose escalation for both monotherapy and PD-1 combination, with backfilling of higher monotherapy dose cohorts ahead of the expansion phase. Per the collaboration's standard terms with Gilead, Compugen cannot disclose precise timelines or interim data prematurely. At 18 months into the Phase 1, it is still early to report data per standard biotech industry timelines, and the program is progressing as planned.

• Q: Could the myOvarian interim readout come before the end of 2026, and are there planned exploratory biomarker analyses alongside the primary PFS endpoint? /

  A: Management maintained the original guidance of an interim analysis by Q1 2027 and will not read out early before the data reaches sufficient maturity. There is no pre-specified biomarker enrichment strategy for the trial (it already excludes patients with liver metastases, and prior data showed COM701 activity in both PD-L1 positive and negative patients). An exploratory analysis of biomarkers and patient characteristics will be conducted once the trial is unblinded.

• Q: When is the earliest expected Phase 3 readout for rilvorigostomib, and does AstraZeneca's new Phase 3 trial change the existing milestone terms for Compugen? /

  A: The new Phase 3 trial does not alter the existing agreement or the $195 million in outstanding milestone payments. Per AstraZeneca's public guidance, formal Phase 3 readouts are expected after 2027, though earlier interim analyses may be possible. AstraZeneca continues to present Phase 2 data at major medical conferences on an ongoing basis.