Ladies and gentleman, thank you for standing by. Welcome to the Compugen Limited Fourth Quarter and full year 2013 Financial Results Conference Call. All participants are present in a listen only mode. Following managements’ formal presentation instructions will be given for the question and answer session. (Operator instructions) As a reminder, this conference is being recorded February 11, 2014. With us online today are Mr. Martin Gerstl, Chairman of the Board; Dr. Anat Cohen-Dayag, President and CEO. I would like to remind everyone that the Safe Harbor language contained in Company’s corporate presentation also pertains to all contents of this conference call. If you have not received the copy of today’s release, and would like to do so, please contact Marty Rickman, at 972-3765-8175 or 415-373-0565 extension 320. Mr. Gerstl, would you like to begin.

Yes, thank you very much. On behalf of our associates and all the employees of Compugen, welcome to our year end 2013 conference call, thanks for joining us today. Pleased to say that looking at the participant list once again we have a record number of participants on our call and I want to welcome those who are participating for the first time. In the drug industry, discovery of novel drugs is by far the most major challenge and key determinant of corporate success. As we begin 2014 Compugen up to more than a decade of pioneering science and infrastructure building is now an emerging leader in directing this challenge and opportunity through the use of our proprietary predictive methodologies and our success to date and competitive advantage is provided by our unique discovery capability are now being demonstrated by our proven ability to predict novel, highly attractive, potential drug candidates even in areas that have been and are being heavily researched by others in both academia and industry. The major portion of our prepared remarks today will be a review by Anat of our performance, against publicly stated key objectives for 2013 and to discover certain key objectives for 2014. First, however, in the absence of Dikla our CFO who is now concluding her maternity leave I would like to briefly comment on our year-end financial results that were reported today and on our overall financial status. With respect to 2013, reported revenues for the fourth quarter and full year, although the $10 million upfront payment under our Bayer agreement signed in August has been received in full and is unrefundable under US GAAP accounting principles, it must be recognized over time resulting in the amount shown on the statement of operations in today’s press release. I will not…

In my prepared remarks today I would like to review our performance against our publicly stated key objectives for 2013 and to disclose certain key objectives for 2014. However, as Martin stated, I would like to provide this information by adding perspective regarding the company’s competitive advantage and discovery aiming to provide the continuing flow of potential first-in-class drug candidates for major unmet medical needs and thereby increasing both short-term and long-term shareholder value. These certain objective for 2014 are listed in our press release issued today. As Martin described, all of our R&D and business efforts and objectives relate to our competitive advantage in predictive drug discovery and can be divided into three categories. First, achieving shareholder value for our existing discoveries in the form of first-in-class product candidate, either for future early stage licensing cost, further future development by the company; second, leveraging our unique predictive capability into new [indiscernible] area. And third, continuing to extend and enhance the underlying science and broadly applicable technology platform. With respect to the first category, achieving shareholder value for our existing discoveries in the form of first-in-class product candidates, we’re pleading over for last year to enter into our first patent program collaboration and license agreement, for the research, development and commercialization of anti-body based therapeutics for cancer immunotherapies against two of our immune checkpoint candidates. This was the major objective for 2013 that has provided key validation for our technology from a major pharmaceutical company. A second objective for 2013 in this category was to advancing on our pipeline program, the next wave of new checkpoint based product candidate from our initial focused discovery program. This objective was also accomplished during 2013 as a selected group of our predicted immune checkpoint proteins were tested utilizing driving (Ph) some new modulation…

Ladies and gentlemen, at this time we will begin the question-and-answer session. (Operator Instruction) The first question is from Keay Nakae of Chardan Capital, please go ahead.

My first question relates to one of your objectives for this year which is to advance one year mAb candidates. Can you talk specifically about where to what point you want to advance, I mean are you looking to take it to a point where you can get an MVA to go into a first-in-man study, where actually should we think about you being able to advance one year lead mAb candidates on your own.

In general the capabilities that we have built in the organization by incorporating some initial or early drug development expertise allow us to move ahead with the program to the stages to even to get into human clinical trials. And we did state in one of the objectives that we aim to be able to select let’s say one of the programs that would be advanced to these stages. So in general we can take programs to very late stages. Having said that, we do expect to balance between early-stage licensing and partnership of later development stages. And we are committed to work upon the objectives that we have stated in the press release but we can definitely get to later stages as a company.

Yes, I just thought of asking you, do you think you will be at a point where you can file an IND by the end of this year?

I wish to say that our programs are early and we did not give a guideline as to exactly as to when we are going to get into clinical trials for filing an IND. But just to make it clear, it won’t be this year. We won’t get into clinical trials this year.

And just if I can, with respect to your other objective of advancing your activities under your current licensed mAb with Bayer, and your use of the word milestone, for achieving milestones, should we interpret that as you being able to achieve the preclinical milestones under the agreement such that you’re able to receive the funds associated with those preclinical activities?

In general the information regarding a milestone or the joined preclinical research that we’re doing together is confidential information, and having said that at this stage that we are entitled to up to $30 million that are related to preclinical milestones at this time that we will achieve the milestone it could be reported by the company in terms of the payments that we would get not the stage that we have got.

Okay so we should make distinction between your use of the word milestone in your objectives for 2014 as activities, but not necessarily receiving payments as stipulated under the agreement with Bayer.

No, what I said is the reverse, when we will get milestone payments we will report that we will not report that for the stages which we had achieved.

Thank you for that clarification.

The next question is from [indiscernible]; please go ahead, [indiscernible]

First of all thank you for taking the question and congratulations on all the progress you’ve made over the past year and beyond that; my question in essence has to do around your comments around partnership opportunities and I was wondering given the very successful deal that’s struck with bio last year. Could you please perhaps characterize the current activities in potential partnering; I know one of the stated goals is additional partnership. But can you just give a sense of how the partnering discussion environment is right now? Thank you.

Thank you, Craig. First we cannot really discuss and disclose or in other with instances with investors’ information that relates to details of discussions with the potential pharma partners. What I wish to say it that we’re very focused due to the activities for advance programs that we have in the pipeline and to make sure that we maximize the value to the shareholders while speaking -- through exploring the business model of the company. And I think this is the only information that we can provide, I think that taking an objective, we have an objective for this year to enter into such arrangements and speak for itself.

Let me add a little to that, this is Martin. I think, first, we don’t know and no company knows when they are going to sign an agreement with another organization, it takes both organizations to agree. And so once you are prepared to accept whatever is offered to you, which clearly we’re not prepared to do into negotiation and once you are into one there isn’t any way to really accurately know how long it will take. I can assure you that we have highly attractive product candidates and significant interest by a number of pharmaceutical companies in evaluating possible arrangements with us. That doesn’t necessarily mean that anything will come of these, or [indiscernible] you never, until you actually go through the negotiations and actually get the approval in many places all the way through the Board of Directors of the other company. It’s not that we’re not telling you, it’s we really don’t know.

I appreciate that. Maybe another way to think about things is, as you find yourself in perhaps potential partnering discussions. What are the key criteria about the company looks at in terms of things you might look for in a partner, whether it’s financial terms? Whether it’s quality of the partner, kind of their expertise maybe flushing out how composite things about that process?

Sure, of course we relate through different parameters some of which you have already mentioned and it is really case by case depends on the asset that we’re discussing or the structure. But in general I would say that except the finance service, definitely we’re focused on making sure that this is the right partner that will give the right attention to the programs that we have in our pipeline, the programs that we’re having early and we will also need to make sure, probably when we progress, but we need to make sure that the right attention is given. And making sure that we’re involved in some of the works and that we’re gradually transferring to the partners, the responsibility. And also we look at what the partners has in the pipeline, how much competition there is in the pipeline for the assets that we have. And on the other way how much expertise the partner brings to the table, we discuss these. So it’s kind contradicting because those that have fair experience usually and have some assets, related assets in the pipeline. So it’s multiple parameter.

I would like to just make sure that one of the things that was not mentioned; I know it’s very important for us because of the relatively early stage that these are being transferred. Our goal is to be involved in the early stages to continue to participate and have the true collaboration with the partner and as Anat said to gradually transfer. Some companies, some of the larger pharmaceutical companies would prefer to just -- they will license something in, they wanted to license it in and [indiscernible] the reports and now it’s their program. In general we would -- that's negative for us, we really do want to be involved during the early stages.

Okay, great. And one last question, I will jump back in the queue, in terms of next new slow for the company and it may not, say hard to predict when you might have news. But are there any perhaps scientific meetings where you know that you will be presenting data that we could look forward to or investors can look forward to?

Yes, we are always updating out website with the conference that we attend and there are a couple of conference that I believe in March that are already updated in our website.

Okay, great. Thank you very much.

The next question is from John [indiscernible]. Please go ahead.

Hello there and thank you for taking my call. My question is I think in 2013 you guys talked about creating a team to handle deal negotiation and I was curious if that group is in place and if so where they be handling any deals that may come to pass in 2014?

The group was generated in order to sign the first deal that we have had and this group is in place, yes.

And it’s the same team both internal and external is continuing with the discussions, negotiations that are now going on.

Okay. So, you have both on internal, external. Are you going to rely on both internal and external teams going forward?

Yeah, the way we look at it is that the external team brings a certain level of expertise and experience than very advantage internal team that we really want to sort of both make sure that we have the best expertise that’s available with respect to these types of deals, negotiations while at the same time be building the internal capability for the future because the whole competitive advantage is our ability to discover multiple product candidate which may in certain time will run and we would assume that we are going to have more and more negotiations ongoing. So, it’s very important that we not just rely on external people but that we build this capability internally.

Okay, all right. Thank you very much.

The next question is a follow-up question from Craig Haack from Ascendant Capital. Please go ahead.

Yeah, two questions. One, could you tell us specifically what the amount of cash you raised on your ATM facility in 2013?

I believe this information is going to be disclosed in our 20th…

I mean we don’t mean to keep it as the secret but we haven’t disclosed it and it will be in the 2015 which we will be filed relatively soon. And it’s probably not appropriate to mention, I think from a overall standpoint the total amount of cash that we raised during, not that we raised but the total cash inflow to the company during 2013 was approximately $42 million. And so that was, the Bayer, the ATM and some other, and there was a base payment. So there is a bunch of thing but from the standpoint of understanding the overall financial situation as I said we brought in cash of $42 million last year. It is important to note that the registration statement under which the ATM was active has expired. So, as of now we do not have an active ATM and as we probably know in order to actually create one, there would have to be a public announcement filing that we’re entering into new realty and we have not made any such announcement.

Okay, thanks. And then just a follow-up to an earlier question regarding upcoming presentations, any of your data. Did you submit any abstracts on your pre-clinical data to ASCO?

No, we did not. ASCO is mainly focused on clinical data and we did not.

There are no further questions at this time. This part I ask Anat Cohen-Dayag to go ahead with the closing statement. I would like to remind participants that a replay of this call is scheduled to begin in 2 hours for a period of 72 hours in U.S. please call 1888-782-4291, in Israel please call 039-255-918, internationally please call 9723-9255-918. Dr. Cohen-Dayag would you would like to make your concluding statement.

Thank you. We really thank all of you for participating in this conference call and giving us the opportunity to provide some insight into how we intend to build our company based on our competitive advantage in predictive drug discovery. During the past four years, as we began to utilize the unique infrastructure that has been established at Compugen, our company had selected two areas of high pharma industry interest from which to focus our discovery possibilities and demonstrate the uniqueness of our approach, established a large and promising early stage discovery pipeline based totally on our own discovery, incorporated early drug development expertise in our areas of focus mainly with the establishment of a U.S. based operation for the generation of monoclonal antibodies against our novel target discovery, validated our business plan by way of initial licensing deal with Bayer involving two of our top line candidates, achieved substantial recognition and interest in the industry for our initial product candidate and significantly enhanced our discovery infrastructure with new platforms and other capabilities. We are very proud of these accomplishments and look forward to building the program in 2014 as I earlier discussed. Again thanks for joining us today.

This concludes the Compugen Ltd fourth quarter and full year 2013 financial results conference call. Thank you for your participation. You may go ahead and disconnect.