Compugen Ltd signed a research deal with Pfizer Inc. to discover three new drugs.

Compugen market shares rose by 18% to a new high of $3.35 in pre-market trade. Pfizer stock, on the other hand, rose to $18.71 in pre-market trade.

The complete process is based on Compugen's discovery platform and is being funded by Pfizer which is basically the "discovery on demand" deal, and this will take few months.

The drugs to be developed are related to therapeutic peptide, but actual drugs to be developed have not been disclosed by the company, and the investment Pfizer will make is also not disclosed yet. Peptides are the molecules formed of amino acids, such as smaller proteins, and can be used in diagnosing, or in treatment, of the disease.

Pfizer will enjoy the rights to worldwide exclusive milestone and royalty bearing licenses of the selected products after the evaluation period.

Anat Cohen-Dayag of Compugen said, "We are extremely pleased to be entering into this multi-target collaboration with Pfizer, and we look forward to entering into similar agreements with additional pharmaceutical and biopharmaceutical companies".