Compugen Says Not Being Investigated in Insider-Trading Probe

By Michael Calia 

Compugen Ltd. on Monday said it isn't being investigated, to its knowledge, for insider trading by the Israeli Securities Authority.

The husband of the company's chief financial officer is under investigation for allegedly giving friends and family inside information about a partnership between Compugen and Bayer Pharma AG, the company said, citing Israeli media reports.

"Although certain officers of the company, including (Chief Financial Officer Dikla Czaczkes Axselbrad), have been investigated by the ISA, to the company's knowledge, the company itself is not a subject of this investigation," Chairman Martin Gerstel said.

"Furthermore," he added, "to the company's knowledge, currently no restrictions have been imposed by the ISA on Dikla's continuing performance as CFO of Compugen."

The drug-research company said insider trading would be a "serious violation" of its policy, and that it would treat it as such. However, at this moment, the company hasn't made any decisions about Ms. Axselbrad's role, it added, as the investigation is still in its early stages.

Bayer and Compugen reached a research-and-development agreement in August, focusing on antibody-based cancer immunotherapies, which are intended to fight cancer by stimulating the body's immune cells. Compugen's shares jumped 45% the day the agreement was disclosed.

Compugen's stock fell eight cents to $10.31 in early trading Monday. The stock is down 4.4% so far this year.

Write to Michael Calia at [e-mail]

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