Full Press Release Details
Announces Fourth Quarter and Year End 2008 Financial Results
SOUTH SAN FRANCISCO, Calif.
February 24, 2009 Rigel Pharmaceuticals, Inc. (Nasdaq:RIGL) today
reported financial results for the fourth quarter and year ended December 31,
quarter of 2008, Rigel reported a net loss of $33.4 million, or $0.91 per
share, compared to a net loss of $19.0 million, or $0.61 per share, in the
fourth quarter of 2007. Weighted average shares outstanding for the fourth
quarters of 2008 and 2007 were 36.6 million and 31.1 million, respectively.
contract revenues from collaborations reported in the fourth quarter of 2008
compared to $8.0 million reported in the fourth quarter of 2007. Revenue in the fourth quarter of 2007
included a $3.0 million milestone payment from Merck Serono for licensing
rights in Japan for R763 and a $5.0 million milestone payment from Pfizer for
the initiation of its Phase 1 clinical trial for R343.
total operating expenses of $34.0 million in the fourth quarter of 2008,
compared to $28.3 million in the fourth quarter of 2007. The increase in
operating expenses was primarily due to increases in clinical development and
stock-based compensation expenses, offset by a reversal of bonus expense during
the fourth quarter of 2008. The increase in clinical development expenses was
primarily due to the costs associated with the Phase 2b clinical trials of R788
in rheumatoid arthritis (TASKi2 and TASKi3).
Stock-based compensation expenses increased from $2.6 million in the
fourth quarter of 2007 to $6.0 million in the fourth quarter of 2008, primarily
due to the higher valuation of options granted in the first quarter of
2008. Based on the Company s decision
not to pay bonuses for 2008, approximately $3.0 million of previously recorded
bonus expense was reversed in the fourth quarter of 2008. Bonus expense recognized in the fourth
quarter of 2007 was approximately $5.1 million.
quarter of 2008, we recorded a Federal refundable credit of $89,000 which was
calculated based on fixed assets placed into service from April 1, 2008 to
December 31, 2008, in accordance with the provisions of the Housing and
Economic Recovery Act of 2008.
months ended December 31, 2008, Rigel reported a net loss of $132.3
million, or $3.67 per share, compared to a net loss of $74.3 million, or $2.57
per share, for the same period of 2007. Rigel recorded no contract revenue from
collaborations during 2008, compared with $12.6 million for the same period in
2008, Rigel had cash, cash equivalents and available for sale securities of
$134.5 million, compared to $160.4 million as of September 30, 2008 and
$108.3 million as of December 31, 2007.
In February 2008, Rigel completed a public offering raising
aggregate net proceeds of approximately $127.5 million. The Company expects that its current capital
resources will be enough for it to maintain its current development priorities
through the second quarter of 2010.
to announcing study results for our two Phase 2b trials, TASKi2 and TASKi3, for
patients with rheumatoid arthritis in July and August of 2009,
respectively said James M. Gower, chairman and chief executive officer of
Rigel. Our recently announced company
restructuring, as well as a decision to forgo bonuses, were key measures taken
at the beginning of 2009 to conserve cash and focus on our active clinical and
preclinical programs.
clinical-stage drug development company that discovers and develops novel,
small-molecule drugs for the treatment of inflammatory/autoimmune diseases as
well as for certain cancers and metabolic diseases. 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.
press release contains forward-looking statements, including statements
related to the sufficiency of Rigel s current capital resources to fund current
development priorities. 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 expects, plans, potential, intends, indicates,
promising, 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, which include, without limitation, risks related to
the development of Rigel s product candidates, including risks associated with
the timing and success of clinical trials, potential problems that may arise in
the clinical testing and approval process and Rigel s need for additional
capital, as well as other risks detailed from time to time in Rigel s SEC
reports, including its Form 10-Q for the quarter ended September 30,
2008. Rigel does not undertake any obligation to update forward-looking
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
| \ | Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||
| Revenues: | |||||||||||||
| Contract revenues from collaborations | $ | $ | 8,000 | $ | $ | 12,600 | |||||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 28,402 | 21,960 | 109,670 | 70,364 | |||||||||
| General and administrative (see Note A) | 5,608 | 6,297 | 27,044 | 21,763 | |||||||||
| Total operating expenses | 34,010 | 28,257 | 136,714 | 92,127 | |||||||||
| Loss from operations | (34,010 | ) | (20,257 | ) | (136,714 | ) | (79,527 | ) | |||||
| Interest income, net | 557 | 1,255 | 4,279 | 5,255 | |||||||||
| Loss before income taxes | (33,453 | ) | (19,002 | ) | (132,435 | ) | (74,272 | ) | |||||
| Income tax benefit | 89 | 89 | |||||||||||
| Net loss | $ | (33,364 | ) | $ | (19,002 | ) | $ | (132,346 | ) | $ | (74,272 | ) | |
| Net loss per share, basic and diluted | $ | (0.91 | ) | $ | (0.61 | ) | $ | (3.67 | ) | $ | (2.57 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 36,584 | 31,084 | 36,025 | 28,936 | |||||||||
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 3,043 | $ | 1,307 | $ | 12,272 | $ | 5,519 | |||||
| General and administrative | 2,915 | 1,259 | 11,487 | 6,168 | |||||||||
| $ | 5,958 | $ | 2,566 | $ | 23,759 | $ | 11,687 | ||||||
| SUMMARY BALANCE SHEET DATA | |||||||||||||
| (in thousands) | |||||||||||||
| December 31, | December 31, | ||||||||||||
| 2008 | 2007 | ||||||||||||
| Cash, cash equivalents and available for sale securities | $ | 134,477 | $ | 108,296 | |||||||||
| Total assets | 143,858 | 115,789 | |||||||||||
| Stockholders equity | 104,165 | 82,182 |