Full Press Release Details
Rigel Announces Fourth
Quarter and Year End 2007 Financial Results
SAN FRANCISCO, Calif. February 12, 2008 Rigel Pharmaceuticals, Inc.
(Nasdaq: RIGL) today reported financial results for the fourth quarter and year
ended December 31, 2007.
quarter of 2007, Rigel reported a net loss of $19.0 million, or $0.61 per
share, compared to a net loss of $15.5 million, or $0.62 per share, in the
fourth quarter of 2006. Weighted average
shares outstanding for the fourth quarter of 2007 and 2006 were 31.1 million
and 25.1 million, respectively.
revenue from collaborations of $8.0 million in the fourth quarter of 2007,
compared to $3.1 million reported in the fourth quarter of 2006. Revenue in the fourth quarter of 2007
included a $3.0 million milestone payment from Merck Serono for licensing
rights in Japan for Rigel s cancer drug candidate, R763, and a $5.0 million
milestone payment from Pfizer for the initiation of its Phase 1 clinical trial
for R343, a syk kinase inhibitor for the treatment of allergic asthma.
expenses were $28.3 million in the fourth quarter of 2007, compared to
operating expenses of $20.0 million during the same period in 2006. The
increase was due to increases in research and development expenditures made in
support of Rigel s ongoing clinical programs, including the Phase 2 clinical
trial for R788 in rheumatoid arthritis, which was completed in the fourth
quarter of 2007, and personnel costs associated with Rigel s 2007 cash incentive
plan. Non-cash stock-based compensation
represented $2.6 million of total operating expenses in the fourth quarter of
2007, compared to $2.4 million in the fourth quarter of 2006.
December 31, 2007, Rigel had revenue of $12.6 million and a net loss of
$74.3 million, or $2.57 per share. This
compares to revenues of $33.5 million and a net loss of $37.6 million, or $1.51
per share for the same period in 2006.
The decrease in revenue is due to various milestone and upfront payments
from Merck, Merck Serono and Pfizer recognized in 2006.
2007, Rigel had cash, cash equivalents and available for sale securities of
$108.3 million, compared with $112.5 million at September 30, 2007 and
$104.5 million at December 31, 2006.
During the first quarter of 2008, we completed a public offering in
which we sold 5,000,000 shares of our common stock at a price of $27.00 per
share. We received net proceeds of approximately $127.5 million after deducting
underwriting discounts and commissions and offering expenses.
announcement of the results from our Phase 2 clinical trial in rheumatoid
arthritis with our lead drug candidate, R788, has focused investors interest
in Rigel s R&D programs,
Gower, Rigel s Chairman and Chief Executive Officer. As a result of our recent financing, we are
positioned to move R788 into advanced clinical studies while continuing
development of new therapeutic opportunities in our pipeline.
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 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 seven
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.
contains forward-looking statements, including statements related to the
timing of results of Rigel s clinical development of product candidates. 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 reports filed with the Securities and Exchange
Commission, including its Form 10-Q for the quarter ended September 30,
2007. Rigel does not undertake any obligation to update forward-looking
Contact: Ryan D. Maynard
Email: invrel@rigel.com
Media Contact: Susan C. Rogers, Alchemy Consulting, Inc.
Email: susan@alchemyemail.com
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenues: | |||||||||||||
| Contract revenues from collaborations | $ | 8,000 | $ | 3,128 | $ | 12,600 | $ | 33,473 | |||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 21,960 | 15,002 | 70,364 | 56,968 | |||||||||
| General and administrative (see Note A) | 6,297 | 5,020 | 21,763 | 19,552 | |||||||||
| Total operating expenses | 28,257 | 20,022 | 92,127 | 76,520 | |||||||||
| Loss from operations | (20,257 | ) | (16,894 | ) | (79,527 | ) | (43,047 | ) | |||||
| Interest income, net | 1,255 | 1,438 | 5,255 | 5,410 | |||||||||
| Net loss | $ | (19,002 | ) | $ | (15,456 | ) | $ | (74,272 | ) | $ | (37,637 | ) | |
| Net loss per common share, basic and diluted | $ | (0.61 | ) | $ | (0.62 | ) | $ | (2.57 | ) | $ | (1.51 | ) | |
| Weighted average shares used in computing net loss per common share, basic and diluted | 31,084 | 25,093 | 28,936 | 24,936 | |||||||||
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 1,307 | $ | 1,317 | $ | 5,519 | $ | 6,515 | |||||
| General and adminstrative | 1,259 | 1,125 | 6,168 | 6,064 | |||||||||
| $ | 2,566 | $ | 2,442 | $ | 11,687 | $ | 12,579 |
SUMMARY BALANCE SHEET DATA
| December 31, | December 31, | ||||||
| 2007 | 2006(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities | $ | 108,296 | $ | 104,471 | |||
| Total assets | 115,789 | 113,240 | |||||
| Stockholder's equity | 82,182 | 87,229 |
(1) Derived from audited financial statements