Full Press Release Details
Rigel Announces Second Quarter 2007 Financial Results
SAN FRANCISCO, Calif., August 7, 2007 Rigel Pharmaceuticals, Inc.
(Nasdaq:RIGL) today announced financial results for the second quarter and six
months ended June 30, 2007.
the second quarter of 2007, Rigel reported a net loss of $19.2 million, or
$0.68 per share, compared to a net loss of $2.3 million, or $0.09 per share in
the second quarter of 2006. Weighted
average shares outstanding for the second quarter of 2007 and 2006 were 28.4
million and 24.8 million respectively.
reported contract revenue from collaborations of $2.0 million in the second
quarter of 2007, compared to $14.3 million in the second quarter of 2006.
Revenue in the second quarter of 2006 included a milestone payment of $5.0
million from Pfizer resulting from the nomination of R343, a novel
small-molecule drug candidate, for advanced preclinical development in allergic
asthma, as well as the amortization of $5.7 million related to upfront and
milestone payments from Merck Serono.
Revenue for the second quarter of 2007 included the recognition of
approximately $1.0 million of deferred revenue due to the ending of the
research phase of the Merck collaboration in May 2007.
operating expenses were $22.6 million in the second quarter of 2007, compared
to operating expenses of $17.9 million in the same period of 2006. The increase in expenses is primarily due to
an increase in preclinical and clinical costs relating to the advancement of
Rigel s clinical research programs, particularly the three Phase 2 clinical
studies of R788 in rheumatoid arthritis, immune thrombocytopenic purpura and
lymphoma. Stock-based compensation
represented $3.7 million of total operating expenses in the second quarter of
2007, compared to $3.1 million in the second quarter of 2006.
the six months ended June 30, 2007, Rigel reported a net loss of $36.3 million,
or $1.36 per share, compared to a net loss of $10.8 million, or $0.43 per
share, in the first six months of 2006. Rigel recorded contract revenue from
collaborations of $4.6 million for the first six months of 2007, compared to
$24.2 million for the same period in 2006.
of June 30, 2007, Rigel had cash, cash equivalents and available for sale
securities of $126.5 million, compared to $88.6 million on March 31, 2007 and
$104.5 million on December 31, 2006.
During the second quarter of 2007, we completed a public offering in
which we sold 5,750,000 shares of our common stock at a price of $9.75 per
share. We received net proceeds of
$52.3 million after deducting commissions, underwriting discounts and offering
the first half of 2007, we focused on maintaining the pace of our product
development programs, including completing a financing that gives us the
flexibility to move these programs forward, said James M. Gower, chairman and
chief executive officer of Rigel. With
our lead product candidate, R788, in three Phase 2 trials and R763 in three
Phase 1 trials in collaboration with Merck Serono and other candidates in late
preclinical development, we believe that we have demonstrated a high level of
productivity, he added.
The following occurred in the second quarter and July 2007:
partner, Merck Serono, initiated a Phase 1 clinical trial of R763 in
combination with gemcitabine (standard of care therapy) in patients with
advanced malignancies (July 2007).
a public offering where we raised net proceeds of $52.3 million through the
sale of 5,750,000 shares of common stock at $9.75 per share (Second Quarter
encouraging preliminary results showing drug activity in raising platelet
counts in a number of the patients studied to date in our Phase 2 clinical
trial of R788 in patients with ITP (immune thrombocytopenic purpura) (Second
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.
Email: invrel@rigel.com
Contact: Susan C. Rogers, Alchemy Consulting, Inc.
Email: susan@alchemyemail.com
thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenues: | |||||||||||||
| Contract revenues | $ | 1,956 | $ | 14,321 | $ | 4,600 | $ | 24,218 | |||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 17,189 | 13,205 | 33,032 | 27,916 | |||||||||
| General and administrative (see Note A) | 5,373 | 4,725 | 10,412 | 9,728 | |||||||||
| Total operating expenses | 22,562 | 17,930 | 43,444 | 37,644 | |||||||||
| Loss from operations | (20,606 | ) | (3,609 | ) | (38,844 | ) | (13,426 | ) | |||||
| Interest income, net | 1,361 | 1,279 | 2,518 | 2,627 | |||||||||
| Net loss | $ | (19,245 | ) | $ | (2,330 | ) | $ | (36,326 | ) | $ | (10,799 | ) | |
| Net loss per share, basic and diluted | $ | (0.68 | ) | $ | (0.09 | ) | $ | (1.36 | ) | $ | (0.43 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 28,355 | 24,842 | 26,779 | 24,829 | |||||||||
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 1,718 | $ | 1,543 | $ | 2,918 | $ | 3,464 | |||||
| General and adminstrative | 1,987 | 1,584 | 3,409 | 3,224 | |||||||||
| $ | 3,705 | $ | 3,127 | $ | 6,327 | $ | 6,688 |
| June 30, | December 31, | ||||||
| 2007 | 2006(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities | $ | 126,451 | $ | 104,471 | |||
| Total assets | 134,162 | 113,240 | |||||
| Stockholder s equity | 110,263 | 87,229 |
(1) Derived from audited financial statements