Drug developer Compugen nets $19M in share sale

AP News
Posted: Dec 30, 2009 10:50 AM

Israeli drug developer Compugen Ltd. on Wednesday said it raised a net $19 million through a stock sale.

The company said it sold 4.1 million shares at a weighted average price of $4.91 per share between Nov. 13 and Tuesday.

The company plans to use the money for general corporate purposes.

Chief Financial Officer Dikla Czaczkes Axselbrad said the company now has $23 million cash on hand. It expects to use about $8.5 million in 2010.

The company did not provide revenue guidance for next year.

Compugen aims to reach a cash-flow break-even point in 2011. To reach that goal, the company must enter additional collaboration agreements in 2010, Axselbrad said. That is now the primary focus of its development efforts.

In morning trading, Compugen shares added 47 cents, or 10 percent, to $5.09.