Rigel Announces Third Quarter 2010 Financial Results South San Francisco, Calif.

Announces Third Quarter 2010 Financial Results

San Francisco, Calif. November 2, 2010 Rigel

Pharmaceuticals, Inc. (Nasdaq:RIGL) today reported financial results for

the third quarter and nine months ended September 30, 2010.

the third quarter of 2010, Rigel reported net income of $50.4 million, or $0.97

and $0.96 per basic and diluted share, respectively, compared to a net loss of

$26.7 million, or $0.70 per basic and diluted share, in the third quarter of

2009. Basic weighted average shares outstanding for the third quarters of 2010

and 2009 were 52.1 million and 38.1 million, respectively. Diluted weighted

average shares outstanding for the third quarters of 2010 and 2009 were 52.8

million and 38.1 million, respectively.

revenue in the third quarter of 2010 was $72.3 million. This consisted of $47.3

million related to amortization of the $100.0 million upfront payment received

from AstraZeneca AB (AZ) pursuant to the exclusive worldwide license agreement

for fostamatinib (formerly known as R788) and $25.0 million in milestones

earned from AZ in connection with the initiation of the Phase 3 clinical trial

program with fostamatinib in patients with RA as well as completing the

transfer of the fostamatinib open label extension study to AZ. As of September 30,

2010, the $100.0 million upfront payment had been fully recognized as revenue. There was no contract revenue reported in the third quarter

reported total operating expenses of $21.9 million in the third quarter of

2010, compared to $26.7 million in the third quarter of 2009. The decrease in

operating expenses was primarily due to the elimination of certain costs

related to fostamatinib as a result of a worldwide license agreement with AZ entered

into March 2010 and the completion of the TASKi2

and TASKi3 clinical trials in July 2009.

the nine months ended September 30, 2010, Rigel reported net income of

$55.1 million, or $1.06 and $1.05 per basic and diluted share, respectively,

compared to a net loss of $86.5 million or $2.32 per basic and diluted share

for the same period of 2009.

of September 30, 2010, Rigel had cash, cash equivalents and available for

sale securities of $167.5 million, compared to $133.3 million as of December 31,

was recently notified by the Internal Revenue Service that the Company has been

certified to receive a total cash grant of approximately $2.4 million related

to the previously filed applications under the Qualifying Therapeutic Discovery

Projects (Section 48D of the Internal Revenue Code). Of this amount, $2.1 million will be received

in 2010 with the remainder to be received in 2011. Rigel is increasing the year-end cash expectation

by the amount of the grant to be received in 2010 and therefore expects to end

2010 with approximately $172.0 million in cash, cash equivalents and available

for sale securities.

Our successful transition of fostamatinib development to AstraZenca has been

substantiated by the recent initiation of three large global phase 3 clinical

studies by our partner , said James M. Gower, Rigel s chairman and chief

executive officer of Rigel. As we look

to the future, Rigel s R&D teams are focused on potentially putting four of

our novel programs into the clinic over the next two years, he added.

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 and autoimmune disorders, as well as 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 fostamatinib, an oral syk inhibitor that

has started its phase 3 clinical trial program for rheumatoid arthritis, 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 its year end cash, cash

equivalents and available for sale securities and identification of a novel programs

for clinical development. 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, potential, 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 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 June 30,

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

Email: invrel@rigel.com

Contact: Susan C. Rogers, Alchemy Consulting, Inc.

Email: susan@alchemyemail.com

thousands, except per share amounts)

SUMMARY BALANCE SHEET DATA

(1) Derived from audited

financial statements