Full Press Release Details
Rigel Announces Fourth
Quarter and Year End 2009 Financial Results
South San Francisco, Calif.
March 2, 2010 Rigel Pharmaceuticals, Inc. (Nasdaq:RIGL) today
reported financial results for the fourth quarter and year ended December 31,
For the fourth quarter of
2009, Rigel reported a net loss of $25.1 million, or $0.48 per share, compared
to a net loss of $33.4 million, or $0.91 per share, in the fourth quarter of
2008. Weighted average shares outstanding for the fourth quarters of 2009 and
2008 were 51.8 million and 36.6 million, respectively.
Contract revenue in the
fourth quarter of 2009 was comprised of a $750,000 milestone payment from
Daiichi Sankyo for the designation of the first lead compound related to the
ligase oncology collaboration. There was no contract revenue reported in the
fourth quarter of 2008.
Rigel reported total
operating expenses of $25.9 million in the fourth quarter of 2009, compared to
$34.0 million in the fourth quarter of 2008. The decrease in operating expenses
was primarily due to the completion of two Phase 2b clinical trials (TASKi2 and TASKi3) in July 2009
and a decrease in stock-based compensation expense. Stock-based compensation expense decreased
from $6.0 million in the fourth quarter of 2008 to $3.8 million in the fourth
quarter of 2009, primarily due to the
lower valuation of options granted in the first quarter of 2009.
For the twelve months ended December 31,
2009, Rigel reported a net loss of $111.5 million, or $2.73 per share, compared
to a net loss of $132.3 million, or $3.67 per share, for the same period of
2009, Rigel had cash, cash equivalents and available for sale securities of
$133.3 million, compared to $134.5 million as of December 31, 2008.
In February 2010 Rigel
announced the signing of a worldwide license agreement with AstraZeneca AB for
certain of its oral Syk inhibitors, including the Company s lead compound
R788. Upon effectiveness of the
agreement, Rigel will receive an upfront payment of $100 million and expects to
receive an additional $25 million in milestone payments in 2010. AstraZeneca is responsible for all
development, regulatory filings, manufacturing and global commercialization
activities for products in all of the licensed indications. Rigel anticipates
that AstraZeneca will begin a global Phase 3 clinical trial program in
rheumatoid arthritis in the second half of 2010.
Our recently announced
agreement with AstraZeneca allows R788 to move quickly forward without
requiring us to fund the very large Phase 3 clinical trial program, said James
M. Gower, chairman and chief executive officer of Rigel. It also provides us
with the resources we anticipate needing to move other of our internally
discovered research and development programs into the clinic in 2010 and 2011,
Last week, Merck Serono
advised Rigel of its plans to return the R763 aurora kinase program for certain
solid tumors and leukemias to Rigel. The program, which Merck Serono licensed
in 2005, has progressed through Phase 1
safety trials. Rigel plans to evaluate the program s preclinical and clinical
data and make a decision on the program s disposition.
Rigel will be hosting an
investor day on March 25, 2010 in Boston, Massachusetts to present an
updated clinical and research pipeline.
Details of the event will be announced shortly.
About Rigel (www.rigel.com)
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 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, without
limitation, statements related to the anticipated effectiveness of the
agreement between Rigel and AstraZeneca, Rigel s receipt of an upfront cash
payment from AstraZeneca, Rigel s potential receipt of milestone payments in
2010, plans to pursue further clinical development of R788, including the
timing thereof, and Rigel s plans to pursue and the resources anticipated for
clinical development of its other research and development programs, 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 entering into
a corporate partnership agreement and reliance on a corporate partner,
including risks that if conflicts arise between us and our corporate partners,
the other party may act in its self-interest and not in the interest of our
stockholders and if any of our corporate partners were to breach or terminate
its agreement with us or otherwise fail to conduct the partnership activities
successfully and in a timely manner, the clinical development of the affected
product candidates or research programs could be delayed or terminated, as well
as other risks associated with the timing and success of clinical trials,
potential problems that may arise in the clinical testing and approval process,
Rigel s need for additional capital and other risks detailed from time to time
in Rigel s SEC reports, including its Quarterly Report on Form 10-Q for
the quarter ended September 30, 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.
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)