Exhibit 99.1
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1180 Veterams 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 First Quarter 2006 Financial
Results
South San Francisco, Calif., - May 2,
2006 — Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial
results for the first quarter ended March 31, 2006.
For the first quarter of 2006, Rigel reported a net loss of $8.5
million, or $0.34 per share, compared to a net loss of $11.2 million, or $0.57
per share, in the first quarter of 2005. Weighted average shares outstanding
for the first quarters of 2006 and 2005 were 24.8 million and 19.7 million,
respectively.
Rigel reported revenue from collaborations of $9.9 million in the first
quarter of 2006, compared to $2.6 million in the first quarter of 2005. The
increase in 2006 revenue was due primarily to milestone payments and upfront
license fees related to the collaboration with Serono as well as ongoing
collaborations with Pfizer and Merck.
Total operating expenses were $19.7 million in the first quarter of
2006, compared to operating expenses of $14.0 million in the first quarter of
2005. Stock based compensation represented $5.0 million of this increase as
$3.6 million was recorded pursuant to the newly implemented accounting rules related
to FAS 123R compared to a recovery of stock based compensation of $1.5 million
in the first quarter of 2005. The remainder of the increase in operating
expenses was primarily attributable to increases in preclinical and clinical
costs associated with R788, our lead product candidate, and personnel expenses.
As of March 31, 2006, Rigel had cash, cash equivalents and
available-for-sale securities of $128.4 million compared to $138.2 million at December 31,
2005, reflecting $9.8 million net cash used for the quarter.
“R788, our lead product candidate
addressing autoimmune diseases, continues to advance in the clinic and we
anticipate beginning two separate clinical efficacy studies for rheumatoid
arthritis and immune thrombocytopenic purpura (ITP) in the second half of 2006,” said James M. Gower, chairman and chief
executive officer of Rigel. “Our pharmaceutical collaborations are
moving along. During the first quarter we achieved important milestones with
Merck and Serono. Merck has identified several potential targets for
ubiquitin ligase development and is moving forward with these. Additionally, we
received a $5.0 million milestone payment from Serono in January related
to the Investigational New Drug (IND) application for R763 and we expect Serono
to begin clinical development later this year.”
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, cancer and viral diseases. Our goal is to move one new product
candidate for a significant indication into the clinic each year. We have
achieved this goal 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. We have
product development programs in inflammatory/autoimmune diseases such as
rheumatoid arthritis, thrombocytopenia, and asthma and allergy, as well as in
cancer.
This press
release contains “forward-looking” statements, including statements related to
Rigel’s plans to pursue clinical development of product candidates and the
timing thereof, the potential efficacy of product candidates and the
sufficiency of financial resources. 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,” “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, 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 year ended December 31, 2005. Rigel does not
undertake any obligation to update forward-looking statements.
Contact: Jim Welch
Phone: 650.624.1176
Email: invrel@rigel.com
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
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Three Months Ended March 31,
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2006
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2005
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(unaudited)
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Revenues:
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Contract revenues from
collaborations
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$
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9,897
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$
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2,618
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Operating expenses:
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Research and
development
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12,790
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12,200
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General and
administrative
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3,363
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3,315
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Stock-based
compensation expense/(recovery) (see Note A)
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3,561
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(1,468
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)
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Total operating
expenses
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19,714
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14,047
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Loss from operations
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(9,817
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(11,429
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)
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Interest income, net
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1,348
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265
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Net loss
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$
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(8,469
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$
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(11,164
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Net loss per common
share, basic and diluted
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$
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(0.34
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$
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(0.57
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Weighted average shares
used in computing net loss per common share, basic and diluted
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24,816
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19,713
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Note A
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Stock-based
compensation expense/(recovery) excluded from:
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Research and
development
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$
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1,921
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$
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(1,027
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General and
administrative
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1,640
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(441
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$
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3,561
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$
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(1,468
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)
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SUMMARY BALANCE SHEET DATA
(in thousands)
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March 31,
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December 31,
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2006
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2005(1)
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(unaudited)
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Cash, cash equivalents
and available for sale securities
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$
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128,367
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$
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138,196
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Total assets
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138,466
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147,668
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Stockholder’s equity
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103,784
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108,588
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(1) Derived from audited financial statements