Compugen Ltd (CGEN)

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UPDATE 2-Compugen shares nearly double on Pfizer deal

* Says Pfizer interested in three drug targets

* Pfizer will have right to exercise options for milestones

* Compugen shares jump as much as 96 pct to near 5-year high (Adds details, share movement)

Dec 23 (Reuters) - Shares of Compugen Ltd (CGEN.O) jumped as much as 96 percent after the drug developer said it entered into a collaboration deal with Pfizer Inc (PFE.N) to develop peptide products for three drug candidates.

The process, based on Compugen's discovery platforms and funded by Pfizer as part of the "discovery on demand" deal, is expected to take a few months, Compugen said.

Following an evaluation process, Pfizer will have the right to exercise options for worldwide exclusive milestone and royalty bearing licenses to develop and commercialize the selected product candidates, it said.

On Monday, Pfizer bought the rights to Athersys Inc's (ATHX.O) stem-cell therapy to treat inflammatory bowel disease. Athersys shares shot up over the next two days to end at $5.55 on Tuesday, up from Friday's close of $1.00.

Shares of Compugen, which were one of the top percentage gainers on Nasdaq on Wednesday, were up 73 percent at $4.92 in high-volume morning trade after touching a nearly five-year high of $5.58. (Reporting by Shailesh Kuber in Bangalore; Editing by Deepak Kannan
http://www.reuters.com/article/idCNSGE5BM0IY20091223?rpc=44