Rigel Announces Fourth Quarter and Year End 2012 Financial Results

      Rigel Announces Fourth Quarter and Year End 2012 Financial Results

PR Newswire

SOUTH SAN FRANCISCO, Calif., March 5, 2013

SOUTH SAN FRANCISCO, Calif., March 5, 2013 /PRNewswire/ --Rigel
Pharmaceuticals,Inc. (Nasdaq:RIGL) today reported financial results for the
fourth quarter and year ended December 31, 2012.

For the fourth quarter of 2012, Rigel reported a net loss of $25.5 million, or
$0.30 per share, compared to a net loss of $25.8 million, or $0.36 per share,
in the fourth quarter of 2011. Weighted average shares outstanding for the
fourth quarter of 2012 and 2011 were 85.3 million and 71.2 million,
respectively.

Rigel reported total operating expenses of $25.6 million in the fourth quarter
of 2012, which were flat compared to $25.9 million in the fourth quarter of
2011.

For the twelve months ended December 31, 2012, Rigel reported contract revenue
of $2.3 million and a net loss of $98.8 million, or $1.32 per basic and
diluted share, compared to contract revenue of $4.8 million and a net loss of
$86.0 million, or $1.36 per basic and diluted share, in 2011. Contract
revenue of $2.3million in 2012 primarily consisted of a $1.0 million upfront
payment from AstraZeneca AB (AZ) to license R256, Rigel's inhaled JAK
inhibitor for moderate to severe chronic asthma, and a payment of $0.8 million
from Daiichi Sankyo related to an oncology compound. Contract revenue of
$4.8million in 2011 included a $4.3million payment from Merck Serono S.A.

As of December 31, 2012, Rigel had cash, cash equivalents and available for
sale securities of $298.2 million, compared to $247.6 million as of December
31, 2011. In October2012, Rigel completed an underwritten public offering in
which it sold an aggregate of 15,237,750 shares of common stock pursuant to an
effective registration statement at a price to the public of$9.50per share.
Rigel received net proceeds of approximately$135.7 millionafter deducting
underwriting discounts and commissions and offering expenses.Rigel expects to
end 2013 with cash and investments in excess of $195.0 million, which is
expected to be sufficient to fund operations into 2015. The expected ending
cash and investment amount for 2013 does not include any potential milestone
payments from current or future collaborators.

"We entered 2013 with important programs in each stage of clinical development
and an R&D organization that continues to enrich and advance Rigel's novel
therapeutic portfolio," said James M. Gower, chairman and chief executive
officer of Rigel. "As 2013 unfolds, we anticipate significant clinical trial
results in multiple programs." he added.

Pipeline Update

As of March 2013, Rigel has several novel small molecules in clinical or
preclinical development, including the OSKIRA Phase 3 clinical trials with
fostamatinib in patients with rheumatoid arthritis (RA), which are being
conducted by Rigel's partner, AZ. AZ expects to report results of the OSKIRA
Phase 3 studies in the second quarter of 2013 and projects a new drug
application (NDA) filing by the end of 2013. 

To date, the most advanced wholly-owned development programs in Rigel's
portfolio are:

  oR343, an inhaled SYK inhibitor for allergic asthma. A Phase 2
    multi-center, multiple-dose, placebo controlled, double-blind study is
    currently underway. The study, SITAR (SYK Inhibition for Treatment of
    Asthma with R343) includes approximately 270 patients with allergic asthma
    and will measure each patient's change in FEV1 (the maximum amount of air
    a person can forcefully exhale in one second) from baseline to dosing
    completion. Prior research on the mechanism of action of inhaled R343
    suggest that this single agent may provide therapeutic benefits to treat
    both the acute/early and chronic/late inflammation mechanisms associated
    with a wide range of allergic asthma symptoms. SITAR results are expected
    in the second half of 2013.
  oR333, a topical dermatological JAK/SYK inhibitor for discoid lupus. Also
    underway currently, this Phase 2 double-blind, multi-center, placebo
    controlled study in patients with active discoid skin lesions from Discoid
    Lupus Erythematosus or Systemic Lupus Erythematosus (SLE) will evaluate
    the primary effectiveness of R333 ointment versus placebo following 28
    days of treatment. Results of this study, called SKINDLE (SYK Kinase
    Inhibition for Discoid Lupus Erythematosus), are expected in the second
    half of 2013.
  oR348, a topical ophthalmic JAK/SYK inhibitor for chronic dry eye. A Phase
    1 clinical trial of R348 eye drops is underway in patients with chronic
    dry eye disease, otherwise known as keratoconjunctivitis sicca. Adults
    with this condition may also suffer from SLE, Sjogren's syndrome, RA or
    other autoimmune disorders. R348's combined JAK/SYK inhibition is expected
    to offer relief by targeting both inflammatory pathways. Rigel expects to
    begin Phase 2 clinical trials of R348 in the first half of 2013.
  oMuscle wasting and muscle endurance. Rigel is conducting preclinical
    studies with an AMPK signaling activator and muscle atrophy inhibitors as
    part of its program focused on developing potential small molecule
    therapeutics for a variety of muscle disorders such as; peripheral
    arterial disease, ventilator atrophy, chronic heart failure, chronic
    obstructive pulmonary disease and type 2 diabetes mellitus. Additional
    information about these programs and development progress will be
    forthcoming later this year.

About Rigel (www.rigel.com)

Rigel Pharmaceuticals, Inc.is a clinical-stage drug development company that
discovers and develops novel, small-molecule drugs for the treatment of
inflammatory and autoimmune diseases, as well as muscle disorders. Rigel's
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 its product candidates. Current product development
programs include fostamatinib, an oral SYK inhibitor that is in Phase 3
clinical trials for RA with its partnerAstraZeneca; R343, an inhaled SYK
inhibitor for asthma and R333, a topical JAK/SYK inhibitor for discoid lupus –
both of which have commenced Phase 2 clinical trials; and, R348, a topical
JAK/SYK inhibitor in a Phase 1 clinical trial for the treatment of chronic dry
eye.

This press release contains "forward-looking" statements, including, without
limitation, statements related to Rigel's future product candidate pipeline
and strategy, expected cash and investments and sufficiency of funds, the
potential uses and efficacyof Rigel's product candidates, the progress of
Rigel's product development programs, including the timing of commencement of
clinical trials and results thereof, the timing and design of its future
clinical trials and potential milestones and regulatory filings associated
with Rigel'sproduct candidates, Rigel's corporate collaborations, and
revenues that may be received from collaborations and the timing of those
potential payments.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," "will,""may," "aim," "believe," "plan,"
"potential,"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, the timing and success of preclinical studies
and clinical trials and the potential problems that may arise in the research
and development and approval process, market competition, risks associated
with Rigel's corporate partnerships, including risks that if conflicts arise
between Rigel's and its corporate partners,the clinical development or
commercialization of the affected product candidates or research programs
could be delayed or terminated,risks associated with Rigel's need for
additional capital, as well as other risks detailed from time to time in
Rigel's reports with theSecurities and Exchange Commission, including its
Quarterly Report on Form 10-Q for the quarter endedSeptember 30, 2012. 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

Media Contact: Susan C. Rogers, Alchemy Consulting, Inc.
Phone: 650.430.3777
Email: susan@alchemyemail.com

STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                           Three Months Ended         Twelve Months Ended
                           December 31,               December 31,
                           2012         2011          2012        2011
                           (unaudited)
Revenues:
   Contract revenues       $       $        $      $     
                                -      -    2,250    4,750
Operating expenses:
   Research and
   development (see Note   19,764       19,819        78,778      69,350
   A)
   General and
   administrative (see     5,852        6,091         22,849      21,768
   Note A)
    Total operating    25,616       25,910        101,627     91,118
   expenses
Loss from operations       (25,616)     (25,910)      (99,377)    (86,368)
Interest income, net       144          123           537         395
Net loss                   $       $        $      $     
                           (25,472)    (25,787)     (98,840)   (85,973)
Net loss per share, basic  $       $        $      $     
and diluted                  (0.30)    (0.36)     (1.32)   (1.36)
Weighted-average shares
used in computing net loss 85,274       71,249        74,967      63,329
per share, basic and
diluted
Note A
Stock-based compensation expense
included in:
   Research and            $       $        $      $     
   development               1,836     2,191      7,050    9,277
   General and             1,427        850           5,567       3,891
   administrative
                           $       $        $      $     
                             3,263     3,041     12,617    13,168
   SUMMARY BALANCE SHEET DATA
   (in thousands)
                           December 31, December 31,
                           2012         2011
   Cash, cash equivalents  $       $     
   and available for sale  298,241     247,640
   securities
   Total assets            310,043      257,106
   Stockholders' equity    289,096      236,149



SOURCE Rigel Pharmaceuticals, Inc.

Website: http://www.rigel.com
 
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