Why Compugen shares crashed today
Stocks in the ever-volatile biotech sector have many ups and downs, and Monday was not one of the highs for Compugen (CGEN -9.27%). The cancer treatment developer released its latest quarterly results and investors showed their displeasure by selling the company’s shares by more than 9%.
Before markets open, Compugen presented its third quarter figures. These showed that the biotech, which has yet to gain approval for any of its products, posted a net loss of $11.7 million ($0.14 per share) for the period, which which was significantly larger than the $6.2 million shortfall in the same quarter of 2021.
Cash and cash equivalents, meanwhile, fell to just over $88 million from nearly $118 million a year ago. Compugen said that should provide it with a sufficient cash trail to carry it through at least the end of 2024.
Analysts following the stock estimated, on average, a net loss per share of just $0.12.
Compugen develops cancer drugs both on its own and in partnership with third parties. In the biotechnology results release, he wrote that one of his two proprietary programs, COM701, in combination with another cancer drug, demonstrated “potent immune activation” against tumors resulting from a form of colorectal cancer.
Compugen added that it plans to move forward with COM701 as part of a triple combination with COM902 and another cancer treatment. The company said it will soon present new clinical data in a trial of the first in a combination therapy being tested in patients with ovarian cancer.
None of Compugen’s financial news or data in the earnings release was particularly concerning or alarming. It looks like investors might get impatient with the pipeline’s evolution, concerned about declining cash and the like, or both.
Eric Volkman has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.