CGEN now around cash:
TEL AVIV, Israel--(BUSINESS WIRE)--April 30, 2003--Compugen Ltd. (Nasdaq:CGEN - News) today reported financial results for the first quarter ended March 31, 2003.
Revenues for the quarter were $2.6 million (including $455,000 from research and development grants), compared to $2.8 million (including $463,000 from research and development grants) for the first quarter of 2002. The net loss for the quarter was $2.3 million (including a non-cash charge of $94,000 for amortization of deferred compensation), or $0.09 per share, compared with a net loss of $3.2 million (including $80,000 of deferred compensation), or $0.12 per share, for the corresponding quarter of 2002.
As of March 31, 2003, Compugen had $67.3 million in cash, cash equivalents, cash deposits and marketable securities, the same amount it had on December 31, 2002. Included in the amount at the end of the most recent quarter is $1.7 million, resulting from a private placement by Evogene Ltd., Compugen's agricultural biotechnology subsidiary.
"The past few months provide good examples for the two types of our science-enabled discoveries - significant biological phenomena on the one hand, and specific discoveries of potentially valuable intellectual property on the other - made possible through our unique and powerful approach to pharmaceutical and diagnostic discovery," said Mor Amitai, Ph.D., President and Chief Executive Officer of Compugen Ltd. "The recent publication of our finding regarding the common occurrence of natural antisense is an example of a scientific phenomenon with potential implications on future drug discovery; and is a result of our earlier understanding of alternative splicing as a phenomenon far more common and important than originally thought. In addition, our understanding of alternative splicing is resulting in the prediction and discovery of important splice variants of genes with potential therapeutic and diagnostic importance, such as the PSA and recently announced VEGF splice variants," added Dr. Amitai.
First Quarter Highlights
* Abbott Laboratories and Compugen announced an agreement for Abbott to utilize Compugen's LEADS computational biology platform and expertise for the accelerated identification of drug targets across multiple therapeutic areas.
* Compugen granted to Diagnostic Products Corporation a license to develop and commercialize diagnostic assays based on two novel prostate-specific proteins for the screening, detection and monitoring of prostate and other cancers.
* Compugen discovered that the occurrence of antisense RNA transcription in the human genome is a common phenomenon. The discovery was published in the April issue of Nature Biotechnology.
Conference Call and Web Cast Information
Compugen will hold a conference call to discuss its first quarter results on April 30, 2003 at 10:00 am EST. To access the conference call, please dial 1-866-500-4964 or 1-866-500-4965 from the US or +972-3-925-5910 internationally. A replay of the conference call will also be available approximately two hours after the completion of the live conference call. To access the replay, please dial +972-3-925-5933. The replay will be available until 12:00 noon EST on May 2, 2003.
The call will also be available via live Web cast through Compugen's Website, located at www.cgen.com.
About Compugen
Compugen (Nasdaq:CGEN - News), a drug and diagnostic discovery company, is a leader in incorporating ideas and methods from mathematics, computer science and physics into the disciplines of biology, organic chemistry and medicine with the objective of significantly increasing the probability of success of drug and diagnostic development. This unique capability is a proven basis for both in-house discovery of potential therapeutic and diagnostic products, and the development of high value platforms, tools and services. Compugen has established collaborations with leading biotechnology and pharmaceutical companies such as Abbott Laboratories, Gene Logic, Millennium Pharmaceuticals, Novartis, Pfizer and Sigma-Genosys. For additional information, please visit Compugen's Website at www.cgen.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include words like "may," "expects," "believes," and "intends," and describe opinions about future events. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Compugen to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of these risks are: changes in relationships with collaborators; the impact of competitive products and technological changes; risks relating to the development of new products; the ability to implement technological improvements; the ability of Compugen to obtain and retain customers. These and other factors are identified and more fully explained under the heading "Risk Factors" in Compugen's annual reports filed with the Securities and Exchange Commission.
COMPUGEN LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except for share and per-share amounts)
Three Months Ended
March 31,
-----------------------
2003 2002
Unaudited Unaudited
----------- -----------
Revenues
Products and services 2,120 2,350
Research and development grants 455 463
Total revenues 2,575 2,813
Cost and Expenses
Cost of products and services 616 597
Research and development expenses 3,168 3,429
Sales and marketing expenses 1,025 1,337
General and administrative expenses 713 1,064
Amortization of deferred compensation 94 80
Total operating expenses 5,616 6,507
Operating loss (3,041) (3,694)
Financing and other income, net 703 541
Net loss (2,338) (3,153)
Basic and diluted net loss per ordinary share (0.09) (0.12)
Weighted average number of ordinary shares
outstanding 26,162,955 26,050,376
COMPUGEN LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(U.S. dollars, in thousands)
March 31, December 31,
2003 2002
Unaudited Audited
----------- ------------
ASSETS
Current assets
Cash, cash equivalents, short-term cash
deposits, and marketable securities 46,588 48,402
Receivables and prepaid expenses 4,064 4,581
Inventories 111 111
Total current assets 50,763 53,094
Long-term investments
Marketable securities 20,705 18,940
Other assets 1,530 1,422
Property and equipment, net 3,884 3,801
Total assets 76,882 77,257
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses 4,195 4,949
Deferred revenues 2,426 1,595
Total current liabilities 6,621 6,544
Long-term liabilities
Accrued severance pay 1,907 1,832
Convertible loan 1,714 -
Total long-term liabilities 3,621 1,832
Total shareholders' equity 66,640 68,881
Total liabilities and shareholders' equity 76,882 77,257
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