(CGEN) Compugen - Ratings and Ratios

Compugen Ltd. is a clinical-stage biotech company focused on discovering and developing innovative therapeutics, primarily in the immuno-oncology space, with a presence in Israel, the US, and Europe. The companys pipeline is centered around several promising programs, including COM701 and COM902, both of which are in Phase 1 trials for treating solid tumors, either as monotherapies or in combination with other therapies like PD-1 inhibitors.

The companys therapeutic pipeline includes several promising candidates: COM701, an anti-PVRIG antibody; COM902, a therapeutic anti-TIGIT antibody; Bapotulimab, targeting ILDR2 for head and neck squamous cell carcinoma; and Rilvegostomig, a bispecific anti-TIGIT/PD-1 antibody in Phase III for non-small cell lung cancer. Additionally, Compugens preclinical pipeline is exploring various mechanisms of immune resistance, including COM503, a high-affinity antibody blocking IL-18 binding protein and IL-18 interaction.

Strategic collaborations are a key aspect of Compugens business model, with partnerships with major pharmaceutical companies like Bristol-Myers Squibb, AstraZeneca, and Gilead Sciences. These collaborations not only validate Compugens technology and pipeline but also provide financial and resource support for the development of its product candidates. For instance, the collaboration with Bristol-Myers Squibb is evaluating COM701 in combination with Opdivo for advanced solid tumors.

From a technical analysis perspective, CGENs stock has shown volatility, with its last price at $1.31, below its SMA20 and SMA50 averages, indicating a short-term bearish trend. The stock is also below its SMA200, suggesting a longer-term downtrend. The ATR indicates a relatively high volatility of 7.84%. Considering the fundamental data, Compugens market capitalization stands at $128.11M, with a negative P/E ratio and a return on equity of -24.39%, reflecting the companys current stage of development and the inherent risks associated with biotech investments.

Forecasting CGENs stock performance involves analyzing both technical and fundamental data. Given the current downtrend and high volatility, a cautious approach is warranted. If Compugens pipeline candidates, particularly Rilvegostomig in Phase III, show positive results, it could lead to a significant increase in stock price. Conversely, failure in clinical trials could exacerbate the downtrend. Based on the current SMA20, SMA50, and SMA200, a potential resistance level could be around $1.40-$1.73. A break above this resistance, driven by positive clinical news, could signal a bullish reversal. However, given the negative ROE and lack of earnings, investors should be prepared for potential downside risks. A realistic forecast could see CGENs stock price potentially reaching $2.00 if Rilvegostomigs Phase III trial results are positive, although this is contingent on various factors, including trial outcomes and overall market conditions.