TEL AVIV, ISRAEL – February 15, 2011 – Compugen Ltd. (NASDAQ: CGEN) today reported financial results for the fourth quarter and year-ending December 31, 2010.
As previously stated, since current revenues result primarily from fees and milestones, our results are, and will continue to be, subject to substantial fluctuations due to timing. Revenues for the fourth quarter of 2010 were $190,000 compared with $25,000 for the comparable period of 2009, and revenues for calendar 2010 were $1.1 million compared with $250,000 for calendar 2009.
The net loss for the most recent quarter was $2.0 million (including a non-cash expense of $343,000 related to stock based compensation), or $0.06 per share, compared with a net loss of $2.0 million (including a non-cash expense of $440,000 related to stock based compensation), or $0.07 per share, for the corresponding quarter of 2009. The net loss for calendar 2010 was $7.2 million (including a non-cash expense of $2.1 million related to stock based compensation), or $0.22 per share, compared with a net loss of $3.8 million (including a non-cash expense of $1.5 million related to stock based compensation), or $0.13 per share, for 2009.
The increase in net loss for calendar 2010 compared with calendar 2009 is due to the sale by Compugen during the second quarter of 2009 of a portion of its holdings of Evogene Ltd. shares for a gain of approximately $3.6 million, which is included in "Other income" for 2009.
Research and development expenses for the fourth quarter of 2010 were $1.8 million, compared with $1.6 million for the fourth quarter of 2009 and remained the Company's largest expense. Research and development expenses for calendar 2010 were $6.2 million compared with $6.0 million for 2009. These amounts are before the deduction of governmental and other grants, which totaled $205,000 for the fourth quarter of 2010, compared with $247,000 for the corresponding quarter in 2009, and $1.0 million for calendar 2010, compared with $944,000 for 2009.
At year-end 2010, the asset "Receivables from financing arrangement" in the amount of $5.0 million (which was subsequently collected by the Company in full in early 2011) and the liability "Research and development funding arrangement" in the amount of $4.0 million both relate to the research and development funding arrangement signed in December of 2010.The $4.0 million liability is an estimated value of the instrument for accounting purposes resulting from the right of the investor to waive his right to receive potential future payments in exchange for 833,334 Compugen ordinary shares.
As of December 31, 2010, cash and cash related accounts totaled $21.8 million compared with $23.4 million at December 31, 2009 (including for 2009 remaining receivables from the equity offering completed in late December 2009). These amounts do not include either the market value of Compugen's holdings of Evogene shares at each such year-end, or for 2010, the $5.0 million received in early 2011 from a research and development funding arrangement signed prior to year-end 2010 referred to in the prior paragraph. For calendar 2011, the Company anticipates an increase in gross cash expenditures to approximately $10 million due primarily to increased activities under its expanded Pipeline Program. Such estimated gross cash expenditures will be offset by revenues and other cash sources in calculating net cash flow for the year.
Compugen will hold a conference call to discuss its fourth quarter and year-end results on Tuesday, February 15, 2011 at 10:00 a.m. EST. To access the conference call, please dial 1-888-407-2553 from the US or 972-3-918-0610 internationally.The call will also be available via live webcast through Compugen's website, located at the following link.
Compugen is a leading drug and diagnostic product candidate discovery company. Unlike traditional high throughput trial and error experimental based discovery, Compugen's discovery efforts are based on in silico (by computer) product candidate prediction and selection utilizing a broad and continuously growing infrastructure of proprietary scientific understandings and predictive platforms, algorithms, machine learning systems and other computational biology tools to address important unmet therapeutic and diagnostic needs – both for Compugen and its partners. Compugen's growing number of collaborations covering the further development and commercialization of Compugen-discovered product candidates provides Compugen with potential milestone payments and royalties on product sales or other forms of revenue sharing. These collaborations may be entered into before product candidate discovery is undertaken pursuant to "discovery on demand" type arrangements, or with respect to existing product candidates, collaborations can be initiated prior to or at the proof of concept stage, or after additional preclinical activities have been undertaken by Compugen. In 2002, Compugen established an affiliate, Evogene Ltd. (www.evogene.com) (TASE: EVGN.TA), to utilize certain of the Company's in silico predictive discovery capabilities in agricultural biotechnology. For additional information, please visit Compugen's corporate website at www.cgen.com.