Exhibit
99.1
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1180 Veterans Blvd.
South San Francisco, CA 94080
Main Phone: 650.624.1100
FAX: 650.624.1101
http://www.rigel.com
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Rigel
Announces Second Quarter 2005 Financial Results
South San Francisco, Calif.,
- - August 3, 2005 — Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported
financial results for the second quarter and six months ended June 30, 2005.
For the second quarter of
2005, Rigel reported a net loss of $12.3 million, or $0.62 per share, compared
to a net loss of $12.3 million, or $0.68 per share, in the second quarter of
2004. Weighted average shares
outstanding for the second quarters of 2005 and 2004 were 19.9 million and 18.2
million, respectively.
Rigel reported revenue
from collaborations of $4.6 million in the second quarter of 2005, compared to
$1.5 million in the second quarter of 2004.
The increase in revenue was primarily due to the initiation of the Merck
& Co., Inc. and Pfizer Inc. collaborations and the receipt of a milestone
payment from Daiichi Pharmaceuticals Co., Ltd. as part of their collaboration
to identify a new type of oncology drug.
The increase was offset by the conclusion of the research phase of the
Novartis program in oncology in mid-2004.
Total operating expenses
were $17.2 million in the second quarter of 2005, compared to operating
expenses of $14.0 million in the second quarter of 2004. Higher operating expenses were primarily attributable to an increase
in preclinical and clinical costs associated with clinical development programs
in allergy, rheumatoid arthritis and oncology, and an increase in non-cash,
stock-based compensation expense due to the appreciation of Rigel’s stock price
in the second quarter of 2005.
For the six months ended
June 30, 2005, Rigel reported a net loss of $23.5 million, or $1.18 per share,
compared to a net loss of $25.4 million, or $1.48 per share, for the same
period last year. Rigel recorded revenue from collaborations of $7.2 million
for the six months ended June 30, 2005, compared to $2.9 million for the first
six months of 2004.
As of June 30, 2005,
Rigel had cash, cash equivalents and available-for-sale securities of $60.1
million, compared to $70.5 million at March 31, 2005 and $71.4 million at
December 31, 2004. Net cash used in the
second quarter of 2005 was $10.4 million.
In
July, Rigel completed a public offering in which it sold 4,197,500 shares of
common stock, including 547,500 shares issued upon exercise of an option
granted to the underwriters to cover over-allotments, at a price of $20.75 per
share. The aggregate net proceeds of the offering, including the shares issued
upon exercise of the over-allotment option, were approximately $81.9 million
after deducting underwriting discounts and commissions.
“With our recent
offering, which raised over $80 million, we believe we have the financial
resources with which to execute our development programs in allergy, rheumatoid
arthritis and oncology as well as to continue to bring forward exciting
additional product candidates to the clinic,” said James M. Gower, chairman and
chief executive officer of Rigel. “Our development programs remain on track
with R112, our lead product candidate for the treatment of allergic rhinitis,
about to begin a second Phase II clinical trial. R406/788 continues to be in Phase I clinical
studies for the treatment of rheumatoid arthritis, with planning for broader,
longer-term safety, pharmacokinetic and
efficacy studies in 2006 underway. We
are busy preparing to file an investigational new drug (IND) application by the
end of this year with R763, a potent, highly-selective, small-molecule
inhibitor of aurora kinase that shows promise in the treatment of certain
cancers. In addition, our collaborations
with Merck and Pfizer are moving forward.”
About Rigel (www.rigel.com)
Rigel’s
mission is to become a source of novel, small-molecule drugs to meet large,
unmet medical needs. We have three product development programs:
asthma/allergy, rheumatoid arthritis and cancer. Our strategy is to commence
clinical trials with one lead compound each year and to develop a portfolio of
product candidates for our own proprietary programs and with potential
collaborative partners.
This
press release contains “forward-looking” statements, including statements
related to Rigel’s plans to pursue pre-clinical studies and clinical
development of product candidates and the timing thereof and the potential
efficacy 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,” “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 pre-clinical studies, 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 Quarterly Report on Form
10-Q for the quarter ended March 31, 2005. Rigel does not undertake any
obligation to update forward-looking statements.
FINANCIAL
TABLES TO FOLLOW
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Contact: Jim Welch
Phone: 650.624.1176
Email: invrel@rigel.com