Full Press Release Details
Announces First Quarter 2009 Financial Results
South San Francisco, Calif.
May 5, 2009 Rigel Pharmaceuticals, Inc. (Nasdaq:RIGL) today
reported financial results for the first quarter ended March 31, 2009.
For the first quarter of
2009, Rigel reported a net loss of $29.9 million, or $0.82 per share, compared
to a net loss of $27.3 million, or $0.79 per share, in the first quarter of
2008. Weighted average shares outstanding for the first quarters of 2009 and
2008 were 36.7 million and 34.4 million, respectively.
Rigel reported total
operating expenses of $30.3 million in the first quarter of 2009, compared to
$28.7 million in the first quarter of 2008. The increase in operating expenses
was primarily due to increases in clinical development and restructuring costs,
partially offset by the decrease in stock-based compensation expense. The
increase in clinical development expenses was primarily due to the costs
associated with the Company s two Phase 2b clinical trials of R788 in rheumatoid
arthritis (TASKi2 and TASKi3). As a result of the
restructuring implemented in the first quarter of 2009, Rigel recorded
restructuring charges of $1.1 million which consisted primarily of severance
payments and extended health benefits for the affected employees. Stock-based compensation
expenses decreased from $5.8 million in the first quarter of 2008 to $2.3
million in the first quarter of 2009, primarily due to the higher valuation of options granted in the first quarter
of 2008 and the full expense recognition of the majority of those options by
In the first quarter of
2009, Rigel recorded a federal refundable tax benefit of approximately $66,000,
which was calculated in accordance with The American Recovery and Reinvestment
As of March 31, 2009,
Rigel had cash, cash equivalents and available for sale securities of $104.8
million compared to $134.5 million as of December 31, 2008. Rigel believes its cash, cash equivalents and available for sale
securities are sufficient to maintain its current development priorities
through the second quarter of 2010.
We expect to deliver top-line results in July 2009 from
both our Taski2 and Taski3 clinical trials, said James M. Gower, chairman and
chief executive officer of Rigel. These two trials add over 670 additional
patients studied with R788 in rheumatoid arthritis to the 189 patients studied
from our Phase 2a trial reported in December 2007, he added.
About Rigel (www.rigel.com)
Rigel is a clinical-stage
drug development company that discovers and develops novel, small-molecule
drugs for the treatment of inflammatory/autoimmune diseases and metabolic
diseases. Our pioneering research focuses on intracellular signaling pathways
and related targets that are
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.
release contains forward-looking statements, including statements related to
relating to the timing of clinical development of R788 and the sufficiency of
its cash, cash equivalents and available for sale securities. 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 believes, expects
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, potential problems that may arise in the clinical testing and approval
process and Rigel s need for additional capital, as well as other risks
detailed from time to time in Rigel s SEC reports, including its Annual Report
on Form 10-K for the year ended December 31, 2008. Rigel does not
undertake any obligation to update forward-looking statements.
Contact: Ryan D. Maynard
Email: invrel@rigel.com
Media Contact: Susan C.
Rogers, Alchemy Consulting, Inc.
Email: susan@alchemyemail.com
STATEMENTS OF OPERATIONS
thousands, except per share amounts)
| Three Months Ended March 31, | |||||||
| 2009 | 2008 | ||||||
| (unaudited) | |||||||
| Revenues: | |||||||
| Contract revenues | $ | $ | |||||
| Operating expenses: | |||||||
| Research and development (see Note A) | 24,538 | 21,620 | |||||
| General and administrative (see Note A) | 4,603 | 7,125 | |||||
| Restructuring charges (see Note A) | 1,141 | ||||||
| Total operating expenses | 30,282 | 28,745 | |||||
| Loss from operations | (30,282 | ) | (28,745 | ) | |||
| Interest income, net | 294 | 1,483 | |||||
| Loss before income taxes | (29,988 | ) | (27,262 | ) | |||
| Income tax benefit | 66 | ||||||
| Net loss | $ | (29,922 | ) | $ | (27,262 | ) | |
| Net loss per share, basic and diluted | $ | (0.82 | ) | $ | (0.79 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 36,699 | 34,417 | |||||
| Note A | |||||||
| Stock-based compensation expense included in: | |||||||
| Research and development | $ | 1,425 | $ | 3,092 | |||
| General and administrative | 719 | 2,754 | |||||
| Restructuring charges | 122 | ||||||
| $ | 2,266 | $ | 5,846 |
SUMMARY BALANCE SHEET DATA
| March 31, | December 31, | ||||||
| 2009 | 2008(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities | $ | 104,811 | $ | 134,477 | |||
| Total assets | 114,026 | 143,858 | |||||
| Stockholders equity | 76,968 | 104,165 |
(1) Derived from audited financial statements