Full Press Release Details
Rigel Announces First Quarter 2008 Financial Results
South San Francisco, Calif. May 6, 2008 Rigel Pharmaceuticals, Inc.
(Nasdaq:RIGL) today reported financial results for the first quarter ended March 31,
During the first quarter of 2008, Rigel reported a net loss of $27.3
million, or $0.79 per share, compared to a net loss of $17.1 million, or $0.68
per share, in the first quarter of 2007. Weighted average shares outstanding
for the first quarters of 2008 and 2007 were 34.4 million and 25.2 million,
Rigel reported no revenues from collaborations in the first quarter of
2008, compared to $ 2.6 million reported in the first quarter of 2007. Collaboration revenue in the first quarter of
2007 included research reimbursement from Merck and amortization of an upfront
payment from Pfizer. Our collaboration
with Merck is focused on research in oncology while our collaboration with
Pfizer is focused on the development of R343 which is currently in Phase 1
clinical testing for allergic asthma via intrapulmonary delivery.
Rigel reported operating expenses of $28.7 million in the first quarter
of 2008, compared to $20.9 million in the first quarter of 2007. The increase in operating expenses was
primarily due to increases in clinical expenses and stock-based compensation
expense. The increase in clinical expenses was mainly due to an increase in
costs associated with our planned Phase 2b clinical trials of R788 in
rheumatoid arthritis, including costs related to manufacturing of R788 material
to be used in the trials. Stock-based
compensation expense increased from $2.6 million in the first quarter of 2007
to $5.8 million in the first quarter of 2008 due mainly to higher valuation of
options granted in the first quarter of 2008.
As of March 31, 2008, Rigel had cash, cash equivalents and
available-for-sale securities of $209.7 million compared to $108.3 million at December 31,
2007. In February 2008, Rigel
completed a public offering in which it sold 5,000,000 shares of common stock
at a public offering price of $27 per share. The aggregate net proceeds of the
offering were approximately $127.5 million after deducting underwriting
discounts and commissions and offering expenses. Rigel expects to end 2008 with greater than
$140.0 million in cash, cash equivalents and available-for-sale securities.
We finished the first quarter of 2008 with a strong cash position that
will be used to fuel our product development programs, including our two
upcoming Phase 2b clinical trials of R788 in rheumatoid arthritis, said James
M. Gower, chairman and chief executive officer of Rigel. We expect to begin enrollment for both of
these clinical trials this quarter.
About 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 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.
This press release contains forward-looking
statements, including statements related to Rigel s anticipated cash, cash
equivalents and available-for-sale securities at the end of 2008 and plans to
pursue clinical trials 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, expects, 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 SEC reports,
including its Annual Report on Form 10-k for the fiscal year ended December 31,
2007. Rigel does not undertake any obligation to update forward-looking
Contact: Ryan D. Maynard
Email: invrel@rigel.com
Media Contact: Susan C. Rogers, Alchemy
Email: susan@alchemyemail.com
SOURCE: Rigel Pharmaceuticals, Inc.
STATEMENTS OF OPERATIONS
thousands, except per share amounts)
| Three Months Ended March 31, | |||||||
| 2008 | 2007 | ||||||
| (unaudited) | |||||||
| Revenues: | |||||||
| Contract revenues | $ | $ | 2,644 | ||||
| Operating expenses: | |||||||
| Research and development (see Note A) | 21,620 | 15,843 | |||||
| General and administrative (see Note A) | 7,125 | 5,039 | |||||
| Total operating expenses | 28,745 | 20,882 | |||||
| Loss from operations | (28,745 | ) | (18,238) | ||||
| Interest income, net | 1,483 | 1,157 | |||||
| Net loss | $ | (27,262 | ) | $ | (17,081 | ) | |
| Net loss per share, basic and diluted | $ | (0.79 | ) | $ | (0.68 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 34,417 | 25,184 | |||||
| Note A | |||||||
| Stock-based compensation expense included in: | |||||||
| Research and development | $ | 3,092 | $ | 1,200 | |||
| General and adminstrative | 2,754 | 1,422 | |||||
| $ | 5,846 | $ | 2,622 |
| March 31, | December 31, | ||||||
| 2008 | 2007(1) | ||||||
| (unaudited) | |||||||
| Cash, cash equivalents and available for sale securities. | $ | 209,670 | $ | 108,296 | |||
| Total assets | 218,031 | 115,789 | |||||
| Stockholders equity | 189,614 | 82,182 |
(1) Derived from audited
financial statements