Full Press Release Details
Announces First Quarter 2010 Financial Results
San Francisco, Calif. May 4, 2010 Rigel Pharmaceuticals, Inc.
(Nasdaq:RIGL) today reported financial results for the first quarter ended March 31,
the first quarter of 2010, Rigel reported a net loss of $22.3 million, or $0.43
per share, compared to a net loss of $29.9 million, or $0.82 per share, in the
first quarter of 2009. Weighted average shares outstanding for the first
quarters of 2010 and 2009 were 52.0 million and 36.7 million, respectively.
revenue in the first quarter of 2010 was $3.3 million. This was an amortization
of the $100.0 million upfront payment from AstraZeneca AB (AZ) pursuant to the
exclusive worldwide license agreement for R788 and other oral Syk inhibitors.
Rigel is recognizing the upfront payment ratably over the six-month transition
period from the effective date of March 26, 2010. As of March 31,
2010, $96.7 million of the upfront payment has been deferred. Rigel expects this deferred amount will be fully
recognized as revenue by September 2010. There
was no contract revenue reported in the first quarter of 2009.
reported total operating expenses of $25.6 million in the first quarter of
2010, compared to $30.3 million in the first quarter of 2009. The decrease in
operating expenses was primarily due to the completion of two Phase 2b clinical
trials (TASKi2 and TASKi3)
in July 2009, partially offset by an increase in stock-based compensation
expense and certain one-time investment banking fees associated with the
closing of our transaction with AZ. Stock-based compensation expense increased
from $2.3 million in the first quarter of 2009 to $5.2 million in the first
quarter of 2010. This increase was primarily due to an additional full quarter
of stock-based compensation expense amortization in the first quarter of 2010
related to options granted in late March of 2009, which were fully
recognized as of the end of the first quarter of 2010, as well as a full
quarter of amortization in the first quarter of 2010 related to options granted
in early January 2010.
of March 31, 2010, Rigel had cash, cash equivalents and available for sale
securities of $109.5 million, compared to $133.3 million as of December 31,
2009. In April 2010, Rigel received the upfront payment of $100.0 million
in connection with the effectiveness of the worldwide license agreement with
AZ. Rigel expects to end 2010 with approximately $170.0 million in cash, cash
equivalents and available for sale securities.
The transition of the
R788 technology and expertise from Rigel to AstraZeneca is proceeding smoothly,
said James M. Gower, chairman and chief executive officer of Rigel. In the
meantime, as we anticipate AstraZeneca beginning Phase 3 trials for R788 later
this year, Rigel s R&D teams are readying the next wave of product
candidates to enter clinical trials, including an oral JAK3 inhibitor with
potential in transplant and other small molecule therapeutics aimed at inflammatory/autoimmune disorders, 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, muscle and metabolic diseases. Rigel s 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 its product candidates. Rigel has product development programs in
inflammatory/autoimmune diseases, including R788, an oral Syk inhibitor
that is expected to enter Phase 3 clinical trials for rheumatoid arthritis in
2010 and R343 in asthma.
This press release contains forward-looking statements,
including, without limitation, statements related to Rigel s expectations as to
the recognition of deferred revenue, its year end cash, cash equivalents and
available for sale securities, and plans to pursue further clinical development
of R788, including the timing 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 expect, plan, anticipate and
similar expressions are intended to identify these forward-looking statements.
These forward-looking statements are based upon Rigel s current expectations
and involve risks and uncertainties. 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, without limitation, risks
associated with the duration of the transition period relating to the agreement
with AstraZeneca AB, Rigel s need for additional capital and 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, 2009. Rigel does not
undertake any obligation to update forward-looking statements and expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein.
Email: invrel@rigel.com
Contact: Susan C. Rogers, Alchemy Consulting, Inc.
Email: susan@alchemyemail.com
(in thousands, except per share
| Three Months Ended March 31, | |||||||
| 2010 | 2009 | ||||||
| (unaudited) | |||||||
| Revenues: | |||||||
| Contract revenues | $ | 3,261 | $ | ||||
| Operating expenses: | |||||||
| Research and development (see Note A) | 17,425 | 24,538 | |||||
| General and administrative (see Note A) | 8,186 | 4,603 | |||||
| Restructuring charges (see Note A) | 1,141 | ||||||
| Total operating expenses | 25,611 | 30,282 | |||||
| Loss from operations | (22,350 | ) | (30,282 | ) | |||
| Interest income, net | 17 | 294 | |||||
| Loss before income taxes | (22,333 | ) | (29,988 | ) | |||
| Income tax benefit | 66 | ||||||
| Net loss | $ | (22,333 | ) | $ | (29,922 | ) | |
| Net loss per share, basic and diluted | $ | (0.43 | ) | $ | (0.82 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 51,964 | 36,699 |
| Stock-based compensation expense included in: | |||||||
| Research and development | $ | 3,083 | $ | 1,425 | |||
| General and administrative | 2,084 | 719 | |||||
| Restructuring charges | 122 | ||||||
| $ | 5,167 | $ | 2,266 |
| March 31, | December 31, | ||||||
| 2010 | 2009(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities | $ | 109,549 | $ | 133,318 | |||
| Total assets | 217,145 | 140,744 | |||||
| Stockholders equity | 92,785 | 109,867 |
audited financial statements