Full Press Release Details
Announces Second Quarter 2008 Financial Results
FRANCISCO, Calif., Aug. 5 /PRNewswire-FirstCall/ Rigel Pharmaceuticals, Inc.
(Nasdaq: RIGL) today reported financial results for the second quarter and six
months ended June 30, 2008.
quarter of 2008, Rigel reported a net loss of $34.0 million, or $0.93 per
share, compared to a net loss of $19.2 million, or $0.68 per share, in the
second quarter of 2007. Weighted average shares outstanding for the second
quarters of 2008 and 2007 were 36.5 million and 28.4 million, respectively.
revenue from collaborations in the second quarter of 2008, compared to $2.0
million reported in the second quarter of 2007. Revenue recorded in the second
quarter of 2007 related to Rigel s research collaboration agreements with Merck
operating expenses of $35.3 million in the second quarter of 2008, compared to
$22.6 million in the second quarter of 2007. The increase in operating expenses
was primarily due to increases in clinical development expenses and to a lesser
extent stock-based compensation expense. The increase in clinical expenses was
mainly due to an increase in costs associated with the two recently initiated
Phase 2b clinical trials of R788 in rheumatoid arthritis (TASKi2 and TASKi3).
Stock-based compensation expense increased from $3.7 million in the second
quarter of 2007 to $5.9 million in the second quarter of 2008 due mainly to
higher valuation of options granted in the first quarter of 2008.
ended June 30, 2008, Rigel reported a net loss of $61.3 million, or $1.73
per share, compared to a net loss in the first six months of 2007 of $36.3
million, or $1.36 per share. Rigel recorded no revenue from collaborations for
the first six months of 2008, compared to $4.6 million for the same period in
2008, Rigel had cash, cash equivalents and available for sale securities of
$185.0 million, compared to $209.7 million on March 31, 2008 and $108.3
million on December 31, 2007. In February 2008, Rigel completed a
public offering raising aggregate net proceeds of approximately $127.5 million.
half of 2008, the advancement of Rigel s clinical development programs took
center stage, said James M. Gower, chairman and chief executive officer of
Rigel. Most significantly, we initiated two important Phase 2b clinical trials
of R788 in patients with rheumatoid arthritis and reported favorable results
from a Phase 2 clinical trial of R788 in B-cell lymphoma patients, he added.
the following highlights in the second quarter of 2008:
Initiation of two Phase 2b clinical trials of
R788 in patients with rheumatoid arthritis, also known as TASKi2 and TASKi3.
Reported preliminary results from Phase 2
clinical trial with R788 in patients with non-Hodgkins lymphoma, which showed
R788 to be potentially beneficial as a treatment for certain types of B-cell
lymphomas (diffuse large B-cell and SLL/CLL).
Publication of results from a preclinical study
showing R788 to be effective in treating Lupus-prone mice (Arthritis and
Rheumatism, May 2008).
Presentation of results from preclinical study,
showing the potential of R788 in delaying the onset of Type 1 diabetes and
prolonging the survival of diabetic mice (American Association of Immunologists
(AAI) meeting, April 2008).
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 pioneering research
focuses on intracellular signaling pathways and related targets that
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. This press release contains forward-looking
statements, including statements related to Rigel s plans to pursue clinical
development of product candidates, and the efficacy 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 plans, potential,
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, as well as
other risks detailed from time to time in Rigel s SEC reports, including its Form 10-Q
for the quarter ended March 31, 2008. Rigel does not undertake any
obligation to update forward-looking statements.
| Contact: | Ryan D. Maynard | |
| Phone: | 650.624.1284 | |
| Email: | invrel@rigel.com | |
| Media Contact: Susan C. Rogers, Alchemy Consulting, Inc. | ||
| Phone: | 650.430.3777 | |
| Email: | susan@alchemyemail.com |
except per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenues: | |||||||||||||
| Contract revenues | $ | $ | 1,956 | $ | $ | 4,600 | |||||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 28,416 | 17,189 | 50,036 | 33,032 | |||||||||
| General and administrative (see Note A) | 6,861 | 5,373 | 13,986 | 10,412 | |||||||||
| Total operating expenses | 35,277 | 22,562 | 64,022 | 43,444 | |||||||||
| Loss from operations | (35,277 | ) | (20,606 | ) | (64,022 | ) | (38,844 | ) | |||||
| Loss on sale/disposal of property and equipment | |||||||||||||
| Interest income, net | 1,248 | 1,361 | 2,731 | 2,518 | |||||||||
| Net loss | $ | (34,029 | ) | $ | (19,245 | ) | $ | (61,291 | ) | (36,326 | ) | ||
| Net loss per share, basic and diluted | $ | (0.93 | ) | $ | (0.68 | ) | $ | (1.73 | ) | $ | (1.36 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 36,505 | 28,355 | 35,461 | 26,779 | |||||||||
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 3,102 | $ | 1,718 | $ | 6,194 | 2918 | ||||||
| General and administrative | 2,817 | 1,987 | $ | 5,571 | 3,409 | ||||||||
| $ | 5,919 | $ | 3,705 | $ | 11,765 | $ | 6,327 |
SUMMARY BALANCE SHEET
| June 30, | December 31, | |||||||||||
| 2008 | 2007 | |||||||||||
| (unaudited) | (1) | |||||||||||
| Cash, cash equivalents and available for sale securities | $ | 185,001 | $ | 108,296 | ||||||||
| Total assets | 194,679 | 115,789 | ||||||||||
| Stockholder s equity | 162,206 | 82,182 |
from audited financial statements