Good morning and thank you for joining us today. With us today from Compugen are, Mr. Martin Gerstel, Chairman of the Board; Dr. Anat Cohen-Dayag, President and CEO, Mr. Ari Krashin, Chief Financial Officer and John Hunter, Vice President, Antibody R&D and Site Head, Compugen USA Incorporated. Before we begin, I would like to read the following regarding forward-looking statements. During the course of this conference call, the company may make projections or other forward-looking statements regarding future events or future business outlook, including anticipated progress on Compugen's pipeline program as well as commercialization efforts. We wish to caution you that such statements reflect only the Company's current expectations and that actual events or results may differ materially. You are kindly referred to the risk factors and cautionary language contained in the documents that the Company filed with Securities and Exchange Commission, including the Company's annual report on Form 20-F, filed March 7, 2016. The Company undertakes no obligation to update any projections or forward-looking statements in the future. I will now turn the call over to Martin Gerstel, Chairman of the Board of Compugen. Please go ahead.

Thank you. On behalf of all of us at Compugen, welcome to our second quarter 2016 conference call and I thank all of you for joining with us today. Please note that Anat and Ari will follow me with prepared remarks are at our headquarters in Israel, while I'm participating in the call from Compugen USA, our facility in South San Francisco. As was mentioned, with me this morning is Dr. John Hunter the Site Head here who will be available with the rest of us to answer questions during the Q&A period following our prepared remarks. Hopefully this difference in locations will not create any communication problems. Recently, I've received questions from a few shareholders that have known me for a very long time asking how I feel about what they see a disappointing current market value for Compugen's shares and my expectations regarding this for the future. For obvious reasons, I cannot provide any predictions regarding future stock prices. However, in my prepared remarks today I would like to address these questions by briefly summarizing the reasons why I'm more optimistic now than ever regarding our future and that is with respect to both the potential for substantial financial rewards for our shareholders and important medical contributions. The foundation for this optimism is of course our unique and broadly applicable predictive biology based research and discovery capabilities, currently focused on drug targets. As has been discussed in the past, these capabilities are the result of our very successful long-term and continuing pioneering efforts in predictive biology, whereby we attempt to replace for purposes of seeking potential discoveries of interest, the industries reliance on observations of various forms of high throughput experimentation with computer predictions based on deeper understanding and modeling of the relevant underlying science. However, although these…

Thank you, Martin. Our financial results for the second quarter of 2016 release today are in line with our expectations. Revenue for the second quarter of 2016 were $0.5 million compared with $0.2 million for the second quarter of 2016 reflecting primarily the milestone payments in the amount of $0.4 million received in the second quarter of 2016 and the non-cash amortization during this period of the upfront payment in both cases related to the August 2013 collaboration and license agreement with Bayer. R&D expenses for the second quarter of 2016 totaled $5.5 million compared with $5.2 million in the second quarter of 2016 continuing to reflect our increase internal and external activities during the period primarily with respect to our leading immuno-oncology programs including pre-clinical activities towards our projected IND filing next year for COM701. Our next loss for the second quarter of 2016 was $6.6 million or $0.13 per diluted share compared with the net loss of $6.8 million or $0.14 per diluted share in the comparable period of 2016. As of June 30, 2016 we had approximately $74.1 million in cash and cash related accounts with no debt. Going into the second half of 2016 and consistent with our prior estimates total cash expenditures for the second half of 2016 are expected to be in the range of $14 million to $15 million, with an estimated cash balance of approximately $60 million at the end of 2016, without taking into consideration any additional cash received from existing or new collaboration during the remainder of the year. With that, I would turn the call over to Anat. Anat?

Thank you, Ari. As we've stated in the past, we believe that based on our first focus discovery efforts utilizing our predictive discovery infrastructure, we've established a pipeline program that is positioned to play a key role in the very existing area of immuno-oncology. In my prepared remarks today, I would like to provide you with some additional insights into a few of the ongoing activities being undertaken by Compugen not only to advance our lease program, but also to ensure that we have a continuing and expanding role in this key medical area. These activities focused on what we believe is one of the broadest novel immuno-oncology target efforts in the industry composed of two key immune checkpoint target categories. T cell-based and myeloid cell-based with both identified within the tumor microenvironment of multiple cancer types. In addition, I would provide some further information regarding our CGEN-15029 program. As pointed out by Martin, most biopharma companies are focusing their development efforts on known T cell checkpoint inhibitors primarily PD1 and CTLA-4. Although certain patients are responsive to current anti-PD1 or CTLA-4 treatment with the portion showing durable clinical responses. The majority of cancer patients sometimes even within a responsive cancer type are not responding to available cancer immunotherapy. As mentioned in the New York Times newspaper of a couple of days ago, similar to other statements made recently. It is believed that additional checkpoints not yet discovered may play a role and the hunt is on to find them, and then make new drugs to act on them. We together with our highly involved and committed SAB and strategic advisor believe that in some of the cases in which patients are not responding the novel process that we discover could be inhibiting the immune response. Therefore, in addition to…

[Operator Instructions] the first question is from Thomas Yip of MLV and Co. Please go ahead.

Hi, everyone. This is Thomas from FBR. Just first a quick question about your new in vivo validation system based on knockout mice. So obviously as you outlined it helps internal R&D efforts, but are there - do you think there will be other potentials to events this validation as standalone system that could perhaps be license [ph] or in collaboration with the development of other drugs.

So in order to answer this question maybe I'll give some kind of background about what is it. In identifying novel target except [ph] of, I'm trying to understand a biology before you launch a therapeutic campaign, the process moving forward is generating an antibody and starting to push it forward in the development process. However, when the least specific protein from the mice you start to learn how this mice is behaving without this protein and you look at the immune system and how it reacts and you can also incorporate tumors into the same mice and understand whether these tumors without this protein, that if it is really inhibiting the immune system, whether the tumor is growing or not and how it affects it. In general, every specific, every knockout is specific to a specific target that we identified and regenerated the knockout mice. So the first thing is to understand the function. Speaking about what to do with other drugs or that would be of interest to others, would be, when would like to test the effect of our target in combination with additional targets or specifically with additional drugs. It's a great tool to understand what is going to be the function of a combined drugs of our target and another target, maybe again ours or another one that is not Compugen's, in working together and to start to have a reason to believe, in specific drug combinations as compared to others. As we stated in the remarks, these knockout mice that were used with the deleting PD1 or deleting CTLA-4 or deleting them together in the knockout mice, where really the basis of trying to starting to understand the clinical relevance of this drugs of these set targets as drugs.

Okay, thanks for all the background, Anat. And then just a follow-up regarding financials so with your IND preparations in mind, how should we look at the future quarter rate, burn rate from this point forward?

So, hey Thomas it's Ari. As I mentioned earlier, right now looking into the remainder of 2016, we expect to have additional expenditures of about $14 million to $15 million again, without taking into consideration any inflows of cash into the company and the current focus is, that we're probably going to end the year of approximately $60 million. Going into 2017, we obviously did not prepared the budget yet or planned it in details, but I would say that it's safe to assume that the burn rate or the cash expenditures will not increase significantly over the cash barrier that we have right now, when we have sufficient resources to develop the program further.

Okay, sounds good. Thanks again for taking the questions guys and looking forward to the next quarter.

Perfect, thanks.

The next question is from Brett Reece of Janney Montgomery Scott. Please go ahead.

The Compugen-15029, which regarded the optimistic might file for an IND filing next year, is there any similarly between that and the potential with the molecule that was licensed with Celgene and Jounce?

I'll say the following, we at Compugen discover novel target where there is almost or no scientific literature work around them and when we work on this target, we need to - as I stated to bridge the gap in order to move ahead with the program and bring it to the stage of 029. And the program that is the under the collaboration or the leading program of Jounce is also a novel target. In the sense that it doesn't have human proof of concept, but on the other hand, it's a target is known and has a years of research behind it and this is one of the differences between the two program. On another front, this specific program of Jounce enter clinical trial later this year, this is according to their reporting CGEN-15029 is actually scheduled for IND for next year. So there is still way to go from this to, from where we are today to clinical trials and these are the main two differences that I would think of.

Okay, this is a kind of layman perception of Compugen, that Jounce announcement triggered a lot of conversation with my clients and shareholders and it went something like this, Brett you got a lot of confidence and faith in Martin Gerstel. The company has got compelling science. There's been numerous news releases of key opinion leaders with resumes that would choke proverbial horse come onboard with Compugen. Your channel checking shows that the Chief Executive Officer is a hardworking, hard charging lady with all these advantages. Jounce gets invited to the prom and we're still sitting home, what do I say to my shareholders?

It's very good question and thank you. I think that it should only set the page or generate more encouragement. This deal is for sure an indication of how much this field is of interest and how much new targets are needed for the immuno-oncology and not only new targets, new immune checkpoints. Remember that we did not disclose yet what are the checkpoints that we are working on, so what Jounce is working on is in the public domain. They've stated these are targets that are known scientific literature, this is one thing. The second thing as I said before the leading program in Jounce pipeline is more advance than 029. It is more advanced, they're going to get to clinical trials late, this year as I stated. We're not yet there we're raising our own pipeline, the targets are compelling promising diverse. We have at Compugen, the infrastructure in order to deal with such novel targets as the ones that we discover and we have both the capabilities and we have the resources in moving forward with them. We are also very committed to advancing forward. So we're currently building the value and the interest is out there. I think that this is build [ph] is indicating that we are operating very compelling and rewarding area. So this is my answer to those that are looking at this type of build [ph] by the way not only they say Jounce, Celgene there as much as you can see, there are other developing areas, mostly focused on licensing antibodies and not the drug targets. Antibodies, the therapeutic antibodies that are moving forward and usually close to the time that they're getting to clinical trials or at the stage of clinical trials. So we have very compelling targets but they're earlier than that.

Great. Thank you.

[Operator Instructions] the next question from Denis O'Hara from Wells Fargo Advisors. Please go ahead.

Anat, I'm just wondering if you could give us a little bit a color on what something Ari said earlier about next year's anticipated burn rate, not being substantially higher than this year or the back half of this year. Am I to read into that or it would be it incorrect for me to read into that the IND filing which I assume there are relatively significant cost attached to, does that suggest that the IND filings is going to be more towards back end of the year as oppose to front end of the year. And if the answer is no, then where were you taking resources from in order to keep the burn rate flat to support the IND filing and things that go into that and then as a follow-up, there was no mention of 15027 at the ADC part of the business, is that because it's being deemphasized, is it not getting the same kind of support, can you just give me an update on that and then for that matter 1501, thank you.

Okay, hi Denis. So with respect to expectations of the expenditure for next year. I would like you to think about it in the following ways. We are of course allocating the required resources for the therapeutic programs themselves to move forward and this is, where our resources are, our focus were [ph] not saving there. In the last few years and I already stated it in the prepared remarks, we generated an infrastructure to be able to validate novel drug targets and this infrastructure we required investments in vitro systems, in vivo systems, what you heard today, what we already did not disclose and we invested money there. So next year, in order to be able to advance the therapeutic program, we intend to shift resources the infrastructure is ready and can address different type of early stage programs and we'll shift resources to therapeutic care development and by way every year, we are dealing with this type of shifting as we move forward in the drug development process. So this is one, with respect to ADC and also 1501, but I'll start with the ADC. Maybe I'll better say first with immuno-oncology. Most of the resources of the organization are devoted to immuno-oncology, this is core focus of the company. We're highly committed, we're on our way to generate a stable pipeline with the programs in development and programs in target validation and we have discovery group that is in an ongoing basis, not only enhancing the capabilities but also employing the capabilities in new target discovery. This is the core focus of the company. The ADC as well as 1501 are getting smaller amount of resources in the company, specifically the ADC the lead program, in 15027 is moving forward and when we will feel that we have the data that we can share we will share with the investors. 1501 as well, this is the situation. It gets smaller resources and specifically with 1501, we've already stated 1501 [indiscernible] immune, we've already stated that we're looking for the right business opportunity in order to push these program to clinical trials. This program has to get to clinical trial, it is really compelling, the mechanism of fashion [ph] is novel and we do not intend to take it alone to clinical trials. We invest our resources to taking the immuno-oncology program forward. So we're focused on this front of sharing this with a business partners.

Okay, thanks.

There are no further questions at this time. Before I turn to Cohen-Dayag to go ahead concluding statements. I would like to [indiscernible] that a replay of this call is scheduled to begin in two hours for the period of 72 hours. In the US please call 1-888-326-9310, in Israel please call 03-925-5925. Internationally please 972-3925-5925. Anat Cohen-Dayag would you like to make concluding statement?

Thank you. I wish to thank, all of our investors. Their continued confidence in and support of Compugen and we look forward to sharing with you our future accomplishments during the remainder of 2016. Thank you.

Thank you. This concludes the Compugen's Limited second quarter 2016 financial results conference call. Thank you for your participation and you may go ahead and disconnect.