Full Press Release Details
Rigel Announces Second Quarter 2009 Financial
SOUTH SAN FRANCISCO, Calif. August 4, 2009 Rigel
Pharmaceuticals, Inc. (Nasdaq:RIGL) today reported financial results for
the second quarter and six months ended June 30, 2009.
For the second quarter of 2009, Rigel reported a net loss of $29.9
million, or $0.81 per share, compared to a net loss of $34.0 million, or $0.93
per share, in the second quarter of 2008. Weighted average shares outstanding
for the second quarters of 2009 and 2008 were 36.7 million and 36.5 million,
reported total operating expenses of $30.0 million in the second quarter of
2009, compared to $35.3 million in the second quarter of 2008. The decrease in operating expenses was
primarily due to decreases in stock-based compensation expense and cost savings
as a result of the restructuring implemented in the first quarter of 2009. Stock-based compensation expenses decreased
from $5.9 million in the second quarter of 2008 to $3.9 million in the second
quarter of 2009, primarily due to a higher valuation of options granted in the
first quarter of 2008 and the full expense recognition of the majority of those options by the end of 2008.
For the six months ended June 30, 2009, Rigel reported a net loss
of $59.8 million, or $1.63 per share, compared to a net loss in the first six
months of 2008 of $61.3 million, or $1.73 per share.
As of June 30, 2009, Rigel had cash, cash equivalents and
available for sale securities of $79.9 million compared to $134.5 million as of
December 31, 2008. The Company
believes that its existing capital resources are sufficient to maintain its
current development priorities through at least the end of the second quarter
With the results from our Phase 2b clinical trials for R788
now in hand, our focus is to secure a collaboration partner for R788, said
James M. Gower, chairman and chief executive officer of Rigel. As I have
previously mentioned, our objective with R788 in rheumatoid arthritis is to
position the product after methotrexate and before biological therapies are
used. We have shown excellent results in
TASKi1 and TASKi2 studies, and we believe that patient population represents
the larger market opportunity for this product. We will also be preparing for
the Phase 3 clinical trials for R788 with a collaboration partner, he added.
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/autoimmune diseases 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.
This press release contains forward-looking
statements, including statements related to the sufficiency of Rigel s cash
resources, Rigel s plans to secure a collaboration partner for R788, and Rigel s
plans to pursue further clinical development of R788, and 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 believes,
focus, will, scheduled, our objective 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, potential problems that may
arise in the clinical testing and approval process, Rigel s expected dependence
upon reaching an agreement with a collaboration partner for R788 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 three months ended
March 31, 2009. Rigel does not undertake any obligation to update
forward-looking statements.
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, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| (unaudited) | (unaudited) | ||||||||||||
| Revenues: | |||||||||||||
| Contract revenues | $ | $ | $ | $ | |||||||||
| Operating expenses: | |||||||||||||
| Research and development (see Note A) | 24,948 | 28,416 | 49,486 | 50,036 | |||||||||
| General and administrative (see Note A) | 5,050 | 6,861 | 9,653 | 13,986 | |||||||||
| Restructuring charges (see Note A) | 1,141 | ||||||||||||
| Total operating expenses | 29,998 | 35,277 | 60,280 | 64,022 | |||||||||
| Loss from operations | (29,998 | ) | (35,277 | ) | (60,280 | ) | (64,022 | ) | |||||
| Interest income, net | 90 | 1,248 | 384 | 2,731 | |||||||||
| Loss before income taxes | (29,908 | ) | (34,029 | ) | (59,896 | ) | (61,291 | ) | |||||
| Income tax benefit | 27 | 93 | |||||||||||
| Net loss | $ | (29,881 | ) | $ | (34,029 | ) | $ | (59,803 | ) | $ | (61,291 | ) | |
| Net loss per share, basic and diluted | $ | (0.81 | ) | $ | (0.93 | ) | $ | (1.63 | ) | $ | (1.73 | ) | |
| Weighted average shares used in computing net loss per share, basic and diluted | 36,704 | 36,505 | 36,701 | 35,461 |
| Note A | |||||||||||||
| Stock-based compensation expense included in: | |||||||||||||
| Research and development | $ | 2,528 | $ | 3,102 | $ | 3,953 | $ | 6,194 | |||||
| General and administrative | 1,331 | 2,817 | 2,050 | 5,571 | |||||||||
| Restructuring charges | 122 | ||||||||||||
| $ | 3,859 | $ | 5,919 | $ | 6,125 | $ | 11,765 | ||||||
| SUMMARY BALANCE SHEET DATA (in thousands) | |||||||||||||
| June 30, | December 31, | ||||||||||||
| 2009 | 2008 (1) | ||||||||||||
| (unaudited) | |||||||||||||
| Cash, cash equivalents and available for sale securities | $ | 79,945 | $ | 134,477 | |||||||||
| Total assets | 88,223 | 143,858 | |||||||||||
| Stockholders equity | 51,555 | 104,165 |
(1) Derived from audited financial statements