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 Third Quarter 2009 Financial Results
SOUTH
SAN FRANCISCO, Calif., November 3, 2009 — Rigel Pharmaceuticals, Inc.
(Nasdaq: RIGL) today reported financial results for the third quarter and nine
months ended September 30, 2009.
For
the third quarter of 2009, Rigel reported a net loss of $26.7 million, or $0.70
per share, compared to a net loss of $37.7 million, or $1.03 per share, in the
third quarter of 2008. Weighted average shares outstanding for the third
quarters of 2009 and 2008 were 38.1 million and 36.6 million, respectively.
Rigel
reported total operating expenses of $26.7 million in the third quarter of
2009, compared to $38.7 million in the third quarter of 2008. The decrease in
operating expenses was primarily due to the completion of two Phase 2b clinical
trials (TASKi2 and TASKi3) in July, a decrease in
stock-based compensation expense, and cost savings resulting from our
restructuring implemented in the first quarter of 2009. Stock-based
compensation expenses decreased from $6.0 million in the third quarter of 2008
to $3.5 million in the third quarter of 2009, primarily due to a higher
valuation of options granted in the first quarter of 2008 and full expense
recognition of the majority of those options by the end of 2008.
For
the nine months ended September 30, 2009, Rigel reported a net loss of $86.5
million, or $2.32 per share, compared to a net loss of $99.0 million in the
first nine months of 2008, or $2.76 per share.
As
of September 30, 2009, Rigel had cash, cash equivalents and available for sale
securities of $156.1 million, compared to $134.5 million as of December 31,
2008. In September 2009, Rigel completed a public offering in which it sold
14,950,000 shares of common stock at a public offering price of $7.25 per
share. The aggregate net proceeds of the offering were approximately $101.5
million after deducting underwriting discounts and commissions, and offering
expenses.
R788 in
RA Clinical Update
Last
week, Rigel met with representatives of the U.S. Food and Drug Administration
(FDA) to discuss the clinical profile of R788, and Rigel’s proposed Phase 3
development plan for patients with rheumatoid arthritis. As a result of that meeting, Rigel expects to
move forward with the plan it proposed to the FDA, including the initiation of
a Phase 3 trial in the first half of 2010, pending the completion of a
collaboration agreement. Rigel plans to
interact with representatives of the European Medicines Agency (EMEA) by the
end of 2009 to discuss the European approval requirements.
“Our
recent successful public offering following the completion of our Phase 2b
trials indicates that interest in our clinical programs, and R788 in
particular, remains strong,” said James M. Gower, chairman and chief executive
officer of Rigel. “We still expect to
enter into a corporate collaboration agreement before initiation of our planned
Phase 3 trial of R788 in rheumatoid arthritis patients in the first half of
2010,” he added.
About
Rigel
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 Rigel’s plans to pursue further
clinical development of R788 and the timing thereof and Rigel’s ability to
enter into a corporate collaboration agreement with respect to R788 on the
anticipated timing, or at all. 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 “expect,” plan,” will,” and similar expressions are
intended to identify these forward-looking statements. These forward-looking
statements are based upon Rigel’s current expectations and involve risks and
uncertainties. 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, without limitation, risks associated with the timing and
success of clinical trials and the commercialization of product candidates,
potential problems that may arise in the research and development and approval
process and risks associated with Rigel’s ability to enter into a collaboration
agreement with respect to R788 and reliance on a corporate partner, as well as
other risks detailed from time to time in Rigel’s filings with the SEC,
including under the heading “Risk
Factors” in the prospectus supplement related to Rigel’s recent public offering
filed with the Securities and Exchange Commission on September 17, 2009. Rigel
does not undertake any obligation to update forward-looking statements and
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein.
###
Contact:
Ryan D. Maynard
Phone: 650.624.1284
Email:
invrel@rigel.com
Contact: Raul R. Rodriguez
Phone: 650.624.1302
Email: invrel@rigel.com