Full Press Release Details
Rigel Announces Third Quarter 2007 Financial Results
FRANCISCO, Calif., Nov. 6 Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today
announced financial results for the third quarter and nine months ended
quarter of 2007, Rigel reported a net loss of $18.9 million, or $0.61 per
share, compared to a net loss of $11.4 million, or $0.46 per share, in the
third quarter of 2006. Weighted average shares outstanding for the third
quarters of 2007 and 2006 were 31.0 million and 25.0 million, respectively.
contract revenues from collaborations reported in the third quarter of 2007,
compared to $6.1 million reported in the third quarter of 2006, which included
a $3.0 million milestone payment from Merck Serono for the initiation of the
first of three Phase 1 studies with R763.
operating expenses were $20.4 million in the third quarter of 2007, compared to
operating expenses of $18.9 million during the same period in 2006. The
increase was primarily due to increases in research and development
expenditures made in support of our ongoing preclinical and clinical programs. Non-cash
stock-based compensation represented $2.8 million of total operating expenses
in the third quarter of 2007, compared to $3.5 million in the third quarter of
months ended September 30, 2007, Rigel reported a net loss of $55.3 million, or
$1.96 per share, compared to a net loss of $22.2 million, or $0.89 per share,
for the same period last year. Rigel recorded contract revenues from
collaborations of $4.6 million for the first nine months of 2007, compared with
$30.3 million for the first nine months of 2006. The decrease was
primarily due to the receipt and recognition of various milestone and upfront
payments from Merck Serono and Pfizer during the first nine months of 2006.
September 30, 2007, Rigel had cash, cash equivalents and available for sale
securities of $112.5 million, compared with $126.5 million at June 30, 2007 and
$104.5 million at December 31, 2006.
continued commitment to support a robust product pipeline has brought us to
this point in the company s history where we expect to announce the results of
two Phase 2 clinical trials with our lead drug candidate, R788, by the end of
this year, said James M. Gower, Rigel s Chairman and Chief Executive Officer.
Rigel 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 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.
This press release 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 June 30, 2007. Rigel does not undertake any obligation to update
forward-looking statements.
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 September 30, | Nine Months Ended September 30, | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenues: | |||||||||||||
| Contract revenues | $ | $ | 6,127 | $ | 4,600 | $ | 30,345 | ||||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 15,372 | 14,050 | 48,404 | 41,966 | |||||||||
| General and administrative (see Note A) | 5,054 | 4,804 | 15,466 | 14,532 | |||||||||
| Total operating expenses | 20,426 | 18,854 | 63,870 | 56,498 | |||||||||
| Loss from operations | (20,426 | ) | (12,727 | ) | (59,270 | ) | (26,153 | ) | |||||
| Interest income, net | 1,482 | 1,345 | 4,000 | 3,972 | |||||||||
| Net loss | $ | (18,944 | ) | $ | (11,382 | ) | $ | (55,270 | ) | $ | (22,181 | ) | |
| Net loss per share, basic and diluted | $ | (0.61 | ) | $ | (0.46 | ) | $ | (1.96 | ) | $ | (0.89 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 31,030 | 24,987 | 28,211 | 24,882 |
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 1,294 | $ | 1,734 | $ | 4,212 | $ | 5,198 | |||||
| General and administrative | 1,500 | 1,715 | 4,909 | 4,939 | |||||||||
| $ | 2,794 | $ | 3,449 | $ | 9,121 | $ | 10,137 |
SUMMARY BALANCE SHEET DATA
| September 30, | December 31, | ||||||
| 2007 | 2006(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities | $ | 112,500 | $ | 104,471 | |||
| Total assets | 119,684 | 113,240 | |||||
| Stockholder s equity | 94,319 | 87,229 |
(1) Derived from audited financial statements