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Compugen Seeks to Assuage Investors' Concerns over Cash Position

NEW YORK (GenomeWeb News) – Compugen today issued a statement in reaction to investors’ questions regarding the firm’s cash position and ability to fund its operations going forward, saying that it has sufficient cash on hand and marketable securities to run its business “well into 2010.”
 
The Tel Aviv-based firm also said that it has no intention of issuing equity at the firm’s current market value. Compugen’s shares were trading down 18 percent at $.72 per share on the Nasdaq on Wednesday afternoon. Its shares have declined around 50 percent in the last two weeks alone.
 
“We have made no announcements that would account for the substantial decline in the price of our shares during the past few days,” Compugen Chairman Martin Gerstel said in a statement. “A great deal of concern has been said that the company’s financial situation would require it to seek additional capital during the next few months regardless of market conditions or the price of its shares. This is not correct.”
 
Gertsel said that although the firm has enough money to fund its operations into 2010, he will outline certain changes next week for the firm’s planned operations in 2009.
 
He also noted that Compugen views the 2.15 million shares of Evogene common shares its owns as “an excellent long-term investment.” He said that the firm has no intention of selling its stake in Evogene, but “they do represent a potential source of cash should that become necessary.”