Compugen Falls 17% on Employee Cuts Announcement

Nasdaq-listed cancer immunotherapy company Compugen Ltd. closed 17.02% down Tuesday after publishing its fourth quarter and full year results for 2018 and announcing its intention to cut 35% of employees (35 people), mostly in research and development.

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Israel-based Compugen reported revenues of $17.8 million for 2018, compared to none in 2017—a result of partnerships with AstraZeneca PLC and Bayer AG. Net loss for the year was $22.6 million, or $0.41 per diluted share, compared to a net loss of $37.1 million, or $0.72 per diluted share, in 2017.

Compugen estimates that it will save $10 million annually as a result of its reorganization, which will also include the consolidation of all its research and development operations in its Israeli offices. The company stated it will outsource some of its preclinical activities. In 2018, Compugen reported research and development expenses of $30.3 million, compared to $28.6 million in 2017.

Compugen forecasts cash expenditures of $27 million to $29 million in 2019, which will include on-off restructuring costs.