Compugen Ltd. (CGEN): SWOT Analysis [Nov-2025 Updated]

You're looking for a clear, no-fluff assessment of Compugen Ltd. (CGEN) as we head into late 2025. The direct takeaway is this: Compugen's value hinges entirely on its early-stage clinical pipeline, particularly COM701, which is showing promise in combination trials, but that promise is balanced by a high cash burn rate and the typical binary risk of a clinical-stage biotech. As a former analyst, I see a classic risk/reward profile here-the science behind their PVRIG and TIGIT antagonists is compelling, but the financial reailty is they are burning through capital with an estimated net loss of around $40 million for the 2025 fiscal year, with no product revenue. Let's map out the strengths that could drive a major licensing deal against the threats that demand a cash raise in 2026.

Compugen Ltd. (CGEN) - SWOT Analysis: Strengths

Novel pipeline assets targeting PVRIG and TIGIT, distinct from competitors

You need to see where Compugen Ltd. truly stands out in the crowded immuno-oncology (IO) space, and it's defintely in the pipeline's novelty. Compugen has two wholly-owned clinical-stage assets: COM701, a potential first-in-class antibody targeting PVRIG, and COM902, a potential best-in-class antibody targeting TIGIT. This dual focus on the DNAM axis-a critical pathway that regulates T-cell and NK-cell function-is a key differentiator. They are one of the few companies positioned to explore the potential of blocking these parallel immune checkpoints comprehensively.

Plus, their TIGIT asset, COM902, has an Fc-reduced format. This is important because it's designed to preserve beneficial T-cells and avoid depleting peripheral T-regulatory cells (T-regs), which is a potential advantage over the Fc-active anti-TIGIT antibodies being developed by some competitors. That's a strong scientific argument for differentiation in a highly competitive market.

• COM701: First-in-class anti-PVRIG antibody.
• COM902: Potential best-in-class anti-TIGIT antibody.
• Unigen™ Platform: AI/ML-powered discovery platform validates target identification.

COM701 showing early positive signals in combination trials for solid tumors

The early clinical data for COM701 provides a tangible sign of its potential. At the European Society for Medical Oncology (ESMO) 2025, Compugen presented pooled Phase 1 data showing that COM701 was well tolerated both as a single agent and in combination. For heavily pretreated platinum-resistant ovarian cancer patients-a group notoriously difficult to treat-the data showed durable responses.

Here's the quick math: patients who derived clinical benefit in this challenging setting saw a median progression-free survival (PFS) of 10.5 months. That kind of signal in late-stage, refractory disease is what gets big pharma's attention, and it strongly supports their ongoing Phase 1/2 MAIA-ovarian study, which dosed its first patient in July 2025, evaluating COM701 as a maintenance therapy for relapsed platinum-sensitive ovarian cancer.

Strategic collaboration with Bristol Myers Squibb (BMS) validates platform technology

A collaboration with a major player like Bristol Myers Squibb (BMS) is a massive vote of confidence, validating Compugen's proprietary computational discovery platform (Unigen™). The collaboration focuses on evaluating COM701 in combination with BMS's PD-1 inhibitor Opdivo (nivolumab) and, crucially, in a triple combination with Opdivo and BMS-986207, their investigational anti-TIGIT antibody.

This isn't just a materials-supply agreement; it's a strategic endorsement backed by capital. BMS has made equity investments in Compugen, including a $12 million investment in 2018 and a subsequent $20 million investment in 2021, demonstrating a long-term belief in the underlying science. Also, don't forget the other major partnerships with AstraZeneca and Gilead, which further de-risk the pipeline and provide significant potential future cash flow.

Strong cash position, estimated around $100 million in late 2025, providing runway

A biotech's financial health is everything, and Compugen has a solid balance sheet. As of September 30, 2025, the company reported approximately $86.1 million in cash, cash equivalents, and marketable securities. After the quarter end, they added approximately $1.6 million in net proceeds from an ATM facility sale in October 2025.

This cash position, assuming no further cash inflows from milestones or royalties, is expected to fund their operating plans into the third quarter of 2027. That's a comfortable runway of nearly two years, giving management the time to execute on the COM701 MAIA-ovarian trial and advance their early-stage pipeline without immediate pressure for dilutive financing. They have no debt.

Finance: Monitor quarterly cash burn against the $87.7 million current cash balance (approximate) to confirm the Q3 2027 runway remains on track.

Compugen Ltd. (CGEN) - SWOT Analysis: Weaknesses

No commercial revenue; completely dependent on funding and milestone payments

Compugen is a clinical-stage biotechnology company, meaning it has no commercial product sales, which is a significant structural weakness. The company's revenue stream is entirely reliant on non-recurring payments from its strategic collaborations and licensing agreements. For the full fiscal year 2025, the consensus revenue estimate is approximately $6.45 million. This revenue is not from selling a drug but from recognizing portions of upfront and milestone payments from partners like Gilead and AstraZeneca.

This financial model creates a dependency that is outside of management's direct control. Any delay in a partner's clinical program-such as AstraZeneca's rilvegostomig-or a change in strategic focus could immediately halt a major revenue source. The volatility is clear: third-quarter 2025 revenue was only $1.9 million, a sharp drop from the $17.1 million reported in the comparable 2024 period. Simply put, the company is not yet selling a product, so every dollar comes with a partner's contingency.

Significant cash burn, with an estimated net loss of around $40 million for the 2025 fiscal year

The core operational reality for a clinical-stage biotech is a high cash burn rate, and Compugen is no exception. While the company maintains a strong cash position-approximately $86.1 million as of September 30, 2025, with a runway into the third quarter of 2027-it continues to operate at a loss. This loss is the direct result of funding expensive research and development (R&D) and clinical trials.

Here's the quick math on the cash burn: the net loss for the first nine months of 2025 was already approximately $21.5 million. Based on analyst consensus for the full fiscal year 2025, the estimated loss per share is -$0.34. Projecting this across the company's approximate share count suggests a full-year 2025 net loss of around $34 million. This consistent cash outflow means the company must rely on its existing cash pile or future milestone payments to sustain operations.

Pipeline concentration risk; success relies heavily on the performance of COM701

Despite having a pipeline with five key value drivers, the near-term fate of the company's proprietary assets is heavily concentrated on its lead candidate, COM701 (anti-PVRIG). While the partnerships with AstraZeneca (rilvegostomig, Phase 3) and Gilead (GS-0321, Phase 1) provide external validation and potential milestone payments, the company's primary internal value creation is tied directly to COM701's success in the MAIA-ovarian platform trial.

This concentration creates a single-point-of-failure risk. If the MAIA-ovarian trial data does not meet the necessary efficacy or safety endpoints, the market capitalization would likely suffer a severe correction, as the next wholly-owned asset, COM902 (anti-TIGIT), is still in earlier development. The company's proprietary pipeline is essentially a one-shot bet on COM701's ability to demonstrate a clear clinical benefit in the maintenance setting for relapsed platinum-sensitive ovarian cancer.

Early-stage clinical data is not yet definitive for registrational trials

The promising data for COM701 is still preliminary and not at a registrational level. The encouraging results, such as the median progression-free survival (PFS) of 10.5 months in a pooled analysis of Phase 1 patients who derived clinical benefit, are from heavily pre-treated patients in early-stage trials. These results, while supportive, are not the definitive evidence required for regulatory approval.

The current pivotal test is the MAIA-ovarian adaptive platform trial, which is a double-blind, randomized, placebo-controlled study-the gold standard for late-stage development. However, the timeline for this definitive data has been pushed back. The interim analysis for the single-agent COM701 sub-trial, which was previously anticipated for the second half of 2026, has now been delayed to the first quarter of 2027. This delay, caused by factors like enrollment timelines or event accumulation, extends the period of uncertainty for investors and pushes back the earliest potential registration pathway.

• Pooled Phase 1 data is encouraging but not a regulatory endpoint.
• Key interim analysis for COM701 delayed to Q1 2027.
• Current randomized sub-trial 1 involves only 60 patients.

Compugen Ltd. (CGEN) - SWOT Analysis: Opportunities

Positive Phase 2 data for COM701 could trigger a major licensing deal or acquisition

You have a clear opportunity to capitalize on the clinical validation of your lead candidate, COM701, a potential first-in-class anti-PVRIG antibody. While the Phase 1/2 MAIA-ovarian trial's interim analysis is slated for Q1 2027, the positive pooled analysis presented at ESMO 2025 in October is the current trigger for strategic interest.

This pooled data from 60 evaluable patients in heavily pretreated, platinum-resistant ovarian cancer showed COM701 was well-tolerated and delivered consistent, durable responses. Specifically, outcomes were stronger in patients without liver metastases, which helps define a responsive patient population for future trials and commercialization. This clinical signal, even from Phase 1, validates the PVRIG pathway you discovered and could accelerate a major licensing deal or an acquisition offer, similar to the existing partnerships you have with AstraZeneca and Gilead.

Here's the quick math: your current collaborations already make you eligible for over $1 billion in potential future milestone payments and tiered royalties. A strong Phase 2 readout for COM701 would likely command an even larger upfront payment and higher royalty stack, defintely boosting your cash position, which stood at approximately $86.1 million as of September 30, 2025.

Expanding the pipeline by identifying new therapeutic targets using their discovery platform

Your predictive computational discovery platform, Unigen™, is a core, validated asset that offers a sustainable competitive edge. This AI/ML-powered platform has already yielded all your clinical-stage candidates: COM701, COM902, and the partnered anti-IL-18BP antibody, GS-0321, which is licensed to Gilead.

The opportunity here is to continuously replenish the pipeline with novel, first-in-class targets that Big Pharma hasn't even identified yet. In 2025 alone, you presented new AI/ML-driven research at major scientific conferences, demonstrating the platform's capability to:

• Predict immune evasion in Triple-Negative Breast Cancer (TNBC) subtypes.
• Uncover new biological pathways in MSI colorectal cancer using spatial transcriptomics.

This ongoing discovery work is crucial because it allows you to maintain a portfolio of wholly-owned, early-stage immuno-oncology programs, giving you maximum leverage for future, high-value licensing deals before the assets even enter the clinic. It's a perpetual engine for new drug candidates.

Potential for COM902 (TIGIT antagonist) to be a best-in-class asset in a competitive class

The TIGIT class has seen its share of ups and downs, but your wholly-owned COM902, a high-affinity anti-TIGIT antibody, is uniquely positioned as a potential best-in-class asset. The key differentiator is its Fc-reduced (Fc-non-active) format.

This design choice is now a major competitive advantage. Management noted in November 2025 that Fc-reduced anti-TIGIT programs preserve beneficial T cells and avoid depleting peripheral T-regs, a mechanism that may translate to improved efficacy and safety compared to the Fc-active TIGIT antibodies whose large Phase 3 trials by competitors were largely discontinued. This is a huge market signal.

Plus, your partner AstraZeneca is already validating the TIGIT component derived from COM902 in their PD-1/TIGIT bispecific antibody, rilvegostomig, which is now in ten active Phase 3 trials. The promising Phase 2 data for rilvegostomig presented at ESMO 2025 further reinforces the differentiated mechanism of your TIGIT component. COM902 remains the only non-partnered Fc-non-active TIGIT antibody in the field, giving you a massive, unencumbered asset to develop or partner.

Capitalizing on the growing market for next-generation checkpoint inhibitors

Your entire pipeline is perfectly aligned with the explosive growth in the next-generation immune checkpoint inhibitors (ICI) market. This market is not just growing; it's accelerating as the industry looks beyond PD-1/PD-L1 to novel targets like PVRIG (COM701) and TIGIT (COM902).

The global immune checkpoint inhibitors market is estimated to be worth approximately $50.29 billion in 2025. This is a massive and expanding target. Analysts project this market size will more than double, reaching $107.86 billion by 2030, representing a compound annual growth rate (CAGR) of 16.49%. Your focus on first-in-class and best-in-class assets positions you to capture a disproportionate share of this growth through licensing and milestone payments.

The next-generation targets are the key growth drivers, with TIGIT, LAG-3, and TIM-3 leading the wave. Your strategic partnerships are already tapping into this trend, as shown by the progress of AstraZeneca's rilvegostomig and Gilead's GS-0321. The table below illustrates the sheer scale of the market you are targeting.

The action is clear: continue to de-risk COM701 and COM902 through clinical trials to maximize your leverage in this rapidly expanding market, especially as you look toward the MAIA-ovarian interim analysis in 2027.

Compugen Ltd. (CGEN) - SWOT Analysis: Threats

You're looking at a clinical-stage biotech like Compugen Ltd. (CGEN), so the main threats are binary: clinical trial failure, or getting crushed by a bigger competitor. The company's cash position into Q3 2027 buys time, but it doesn't eliminate the risk of a major dilution event if key clinical readouts disappoint.

Failure of COM701 in later-stage trials would severely impact valuation and funding

The entire valuation hinges on the success of Compugen's lead asset, COM701, a potential first-in-class anti-PVRIG antibody. The biggest near-term binary risk is the MAIA-ovarian platform trial, which is evaluating COM701 as a maintenance therapy in relapsed platinum-sensitive ovarian cancer. A negative result here would be catastrophic.

The next major catalyst for this program is the projected interim analysis, which is estimated to occur in Q1 2027. While earlier Phase 1 pooled data presented at ESMO 2025 showed promising durable responses, with a median Progression-Free Survival (PFS) of 10.5 months in patients who derived clinical benefit, the real test is the randomized, placebo-controlled Phase 2/3 trial. If the interim analysis fails to show a meaningful clinical benefit, the stock price will defintely take a severe hit, making future capital raises extremely difficult.

Fierce competition from larger pharmaceutical companies with deeper pockets in the TIGIT space

The TIGIT (T-cell immunoreceptor with Ig and ITIM domains) inhibitor market is crowded and dominated by major pharmaceutical companies with vast resources, which is a huge threat. Compugen's anti-TIGIT antibody, COM902, is licensed to AstraZeneca, which is a positive, but also highlights the competitive landscape.

AstraZeneca is currently running the largest Phase 3 program in the TIGIT space with their PD-1/TIGIT bispecific antibody, rilvegostomig, which uses the TIGIT component derived from Compugen's COM902. They have ten active Phase 3 trials underway across multiple cancer types. If AstraZeneca's rilvegostomig or a competitor's TIGIT program (like those from Roche or Merck) proves superior or achieves market approval first, it could significantly diminish the value of Compugen's wholly-owned pipeline and its ability to compete in the broader immuno-oncology market. The sheer scale of their competitors' clinical efforts is a constant headwind.

Regulatory delays or unexpected safety signals in ongoing or planned clinical studies

Clinical-stage biotechs face inherent regulatory risk, and Compugen is no exception. The MAIA-ovarian trial for COM701 is a global effort, enrolling patients in the U.S., Israel, and France. Managing regulatory bodies across multiple jurisdictions adds complexity and the potential for delays.

While the pooled Phase 1 data for COM701 showed it was well tolerated, any unexpected safety signals in the ongoing MAIA-ovarian trial or the Phase 1 trial for GS-0321 (the anti-IL18BP antibody licensed to Gilead) could halt development, forcing costly re-designs or termination. This risk is amplified by the fact that the company's value is concentrated in a few key clinical assets.

Need for significant capital raise in 2026, which could dilute existing shareholder value

While Compugen has a relatively long cash runway, the need for future capital is a certainty for a company with no product revenue. As of September 30, 2025, Compugen reported approximately $86.1 million in cash, cash equivalents, and marketable securities. Management projects this cash balance is sufficient to fund operations into the third quarter of 2027.

Here's the quick math: the net loss for Q3 2025 was approximately $6.98 million, and R&D expenses were around $5.8 million. Sustaining this burn rate means they will eventually need more cash. The threat is that if a key milestone, like the COM701 interim analysis in Q1 2027, is negative, the company will be forced to raise capital at a significantly lower valuation.

Plus, dilution is already happening. The company recently sold approximately 0.8 million shares through its At-The-Market (ATM) facility in October 2025, raising net proceeds of about $1.6 million. This small, continuous dilution is a precursor to the larger capital raise that will be necessary to fund Phase 3 trials for COM701 beyond the current runway, especially if a major partnership milestone doesn't materialize.

Dilution is a constant reality for clinical-stage biotechs.