Full Press Release Details
Announces Second Quarter 2010 Financial Results
San Francisco, Calif. August 3, 2010 Rigel Pharmaceuticals, Inc.
(Nasdaq:RIGL) today reported financial results for the second quarter and six
months ended June 30, 2010.
the second quarter of 2010, Rigel reported a net income of $27.0 million, or
$0.52 and $0.51 per basic and diluted share, respectively, compared to a net
loss of $29.9 million, or $0.81 per basic and diluted share, in the same period
of 2009. Basic weighted average shares outstanding for the second quarters of
2010 and 2009 were 52.0 million and 36.7 million, respectively. Diluted
weighted average shares outstanding for the second quarters of 2010 and 2009
were 52.5 million and 36.7 million, respectively.
revenue in the second quarter of 2010 was $49.5 million. This was an
amortization of the $100.0 million upfront payment from AstraZeneca AB (AZ)
pursuant to the exclusive worldwide license agreement for fostamatinib disodium
(FosD, previously referred to as R788). Rigel is recognizing the upfront
payment ratably over the six-month transition period from the effective date of
March 26, 2010. As of June 30, 2010, $47.3 million of the upfront
payment has been deferred. Rigel expects
that this deferred amount will be fully recognized as revenue during the three
months ending September 30, 2010. There
was no contract revenue reported in the second quarter of 2009.
reported total operating expenses of $22.5 million in the second quarter of
2010, compared to $30.0 million in the same period of 2009. The decrease in
operating expenses was primarily due to the completion of two Phase 2b clinical
trials (TASKi2 and TASKi3)
the six months ended June 30, 2010, Rigel reported a net income of $4.7
million, or $0.09 per basic and diluted share, compared to a net loss of $59.8
million, or $1.63 per basic and diluted share, for the same period of 2009.
of June 30, 2010, Rigel had cash, cash equivalents and available for sale
securities of $187.5 million, compared to $133.3 million as of December 31,
2009. In April 2010, Rigel received an upfront payment of $100.0 million
in connection with its worldwide license agreement with AZ. Rigel expects to
end 2010 with approximately $170.0 million in cash, cash equivalents and
available for sale securities.
Rigel remains focused on advancing
new product candidates into clinical programs, said James M. Gower, chairman
and chief executive officer of Rigel. In addition to our partner s plan to
initiate Phase 3 studies of FosD in RA patients later this year, we plan to
enter a JAK3 candidate into the clinic for the treatment of transplant
rejection by the end of this year and expect to add another new molecule into
our pipeline for immune indications in the near future.
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. Current product development programs
include FosD (previously referred to as R788), an oral syk inhibitor that is
expected to enter Phase 3 clinical trials for rheumatoid arthritis in 2010, and
R343, an inhaled Syk inhibitor that is in clinical trials for asthma.
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,
clinical plans with respect to a JAK3 candidate, identification of a new
molecule for immune indications and plans to pursue further clinical
development of FosD, 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, 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, the timing and success of
preclinical studies and clinical trials, and other risks detailed from time to
time in Rigel s SEC reports, including its Annual Report on Form 10-Q for
the quarter ended March 31, 2010. 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
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| (unaudited) | |||||||||||||
| Revenues: | |||||||||||||
| Contract revenues | $ | 49,457 | $ | $ | 52,718 | $ | |||||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 16,815 | 24,948 | 34,240 | 49,486 | |||||||||
| General and administrative (see Note A) | 5,664 | 5,050 | 13,850 | 9,653 | |||||||||
| Restructuring charges (see Note A) | 1,141 | ||||||||||||
| Total operating expenses | 22,479 | 29,998 | 48,090 | 60,280 | |||||||||
| Income (loss) from operations | 26,978 | (29,998 | ) | 4,628 | (60,280 | ) | |||||||
| Interest income, net | 51 | 90 | 68 | 384 | |||||||||
| Income (loss) before income taxes | 27,029 | (29,908 | ) | 4,696 | (59,896 | ) | |||||||
| Income tax benefit | 27 | 93 | |||||||||||
| Net income (loss) | $ | 27,029 | $ | (29,881 | ) | $ | 4,696 | $ | (59,803 | ) | |||
| Net income (loss) per share: | |||||||||||||
| Basic | $ | 0.52 | $ | (0.81 | ) | $ | 0.09 | $ | (1.63 | ) | |||
| Diluted | $ | 0.51 | $ | (0.81 | ) | $ | 0.09 | $ | (1.63 | ) | |||
| Weighted average shares used in computing net income (loss) per share: | |||||||||||||
| Basic | 51,974 | 36,704 | 51,969 | 36,701 | |||||||||
| Diluted | 52,511 | 36,704 | 52,480 | 36,701 | |||||||||
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 1,917 | $ | 2,528 | $ | 5,000 | $ | 3,953 | |||||
| General and administrative | 1,784 | 1,331 | 3,868 | 2,050 | |||||||||
| Restructuring charges | 122 | ||||||||||||
| $ | 3,701 | $ | 3,859 | $ | 8,868 | $ | 6,125 |
SUMMARY BALANCE SHEET DATA
| June 30, | December 31, | |||||||||||
| 2010 | 2009(1) | |||||||||||
| (unaudited) | ||||||||||||
| Cash, cash equivalents and available for sale securities | $ | 187,458 | $ | 133,318 | ||||||||
| Total assets | 195,910 | 140,744 | ||||||||||
| Stockholders equity | 124,433 | 109,867 |
from audited financial statements