Rigel Announces First Quarter 2007 Financial Results South San Francisco, Calif.

First Quarter 2007 Financial Results

San Francisco, Calif. May 10, 2007 Rigel Pharmaceuticals, Inc.

(Nasdaq:RIGL) today reported financial results for the first quarter ended

the first quarter of 2007, Rigel reported a net loss of $17.1 million, or $0.68

per share, compared to a net loss of $8.5 million, or $0.34 per share, in the

first quarter of 2006. Weighted average shares outstanding for the first

quarters of 2007 and 2006 were 25.2 million and 24.8 million, respectively.

reported contract revenues of $2.6 million in the first quarter of 2007,

compared to $9.9 million in the first quarter of 2006. Revenue in the first

quarter of 2006 included $6.8 million related to the amortization of upfront

and milestone payments associated with the Merck Serono collaboration.

operating expenses were $20.9 million in the first quarter of 2007, compared to

$19.7 million in the first quarter of 2006. The increase in operating expenses

was primarily due to the costs associated with three ongoing Phase 2 clinical

studies of R788 for the treatment of rheumatoid arthritis, immune

thrombocytopenic purpura (ITP), and B-cell lymphoma. These cost increases were

offset by a reduction in stock-based compensation from $3.6 million in the

first quarter of 2006 to $2.6 million in the first quarter of 2007.

of March 31, 2007, Rigel had cash, cash equivalents and available-for-sale

securities of $88.6 million, compared to $104.5 million at December 31, 2006,

reflecting a net cash decrease of $15.9 million for the first three months of

May 8, 2007, Rigel closed a public offering of 5,000,000 shares of common stock

at a price of $9.75 per share. The aggregate net proceeds of the offering were

approximately $45.8 million after deducting underwriting discounts and

commissions, but not offering expenses.

recently completed public offering indicates confidence in our clinical

research programs, especially the three Phase 2 studies with our lead product

candidate, R788, said James M. Gower, chairman and chief executive officer of

Rigel. The additional financing will enable us to continue to pursue our

mission to develop potential novel, small molecule therapeutics, he added.

announced the following clinical milestones in 2007:

- Received encouraging preliminary results in its Phase 2 clinical trial

of R788 in patients with ITP

- Initiated a Phase 1/2 clinical trial of R788 in patients with B-cell

- Our partner, Merck Serono, initiated a Phase 1 clinical trial of R763

in hematological malignancies (leukemia)

is a clinical-stage drug development company that discovers and develops novel,

small-molecule drugs for the treatment of inflammatory/autoimmune diseases and

cancer, as well as viral and metabolic diseases. Our goal is to file one new

investigational new drug (IND) application in a significant indication each

year. Rigel has achieved this goal every year since 2002. Our pioneering

research focuses on intracellular signaling pathways and related targets that

are critical to disease mechanisms. Rigel s productivity has resulted in

strategic collaborations with large pharmaceutical partners to develop and

market our product candidates. Rigel has product development programs in

inflammatory/autoimmune diseases such as rheumatoid arthritis thrombocytopenia

and asthma, as well as in cancer.

press release contains forward-looking statements, including statements

related to Rigel s plans to pursue clinical development of product candidates,

and the timing of results thereof. Any statements contained in this press

release that are not statements of historical fact may be deemed to be

forward-looking statements. Words such as plans, intends, indicates, promising,

expects, anticipates and similar expressions are intended to identify these

forward- looking statements. There are a number of important factors that could

cause Rigel s results to differ materially from those indicated by these forward-

looking statements, including risks associated with the timing and success of

clinical trials and the commercialization of product candidates, as well as

other risks detailed from time to time in Rigel s SEC reports, including its

Form 10-Q for the quarter ended March 31, 2007. Rigel does not undertake any

obligation to update forward-looking statements.

Email: invrel@rigel.com

Media Contact: Susan C. Rogers, Alchemy Consulting, Inc.

Email: susan@alchemyemail.com

(in thousands, except per share amounts)

from audited financial statements