Biotechnology firm Compugen (Nasdaq: CGEN)has spun off its agro-biology activity. The new entity, Agro-LEADS, is located in Rehovot.
Compugen CFO Nurit Benjamini said that the spin-off does not involve new activity, however, agro-biology is not part of the parent company's core activity.
Compugen trades at a market cap of $115 million and is listed in Tel Aviv as well.
Last month Compugen appointed CEO More Amitai and Benjamini to serve in key positions in Agro-LEADS. Benjamini said that the change is only in the status of Agro-LEADS, which has become a legal entity. She said that Compugen did not allocate cash or recruit staff for this purpose.
Dolev and Abramovitch Hi-Tech Information was first to report that Compugen was establishing a subsidiary.
Agro-LEADS technology is based on Compugen's LEADS computational biology platform, on the basis of which Agro-LEADS develops applications for agriculture. LEADS is used for finding gene variants that can assist in identifying drug targets and disease diagnostics.
Compugen's main customers include Novartis, Pfizer, and US post-genomics company diaDexus.