Rigel Announces Third Quarter 2013 Financial Results

             Rigel Announces Third Quarter 2013 Financial Results

PR Newswire

SOUTH SAN FRANCISCO, Calif., Nov. 5, 2013

SOUTH SAN FRANCISCO, Calif., Nov. 5, 2013 /PRNewswire/ -- Rigel
Pharmaceuticals,Inc. (Nasdaq: RIGL) today reported financial results for the
third quarter and nine months ended September 30, 2013.

For the third quarter of 2013, Rigel reported a net loss of $23.8 million, or
$0.27 per share, compared to a net loss of $25.5 million, or $0.36 per share,
in the same period of 2012. Weighted average shares outstanding for the third
quarters of 2013 and 2012 were 87.4 million and 71.6 million, respectively.

Rigel reported total operating expenses of $23.9 million in the third quarter
of 2013, compared to $25.6 million for the same period in 2012. The decrease
in operating expenses was primarily due to the decrease in stock-based
compensation and bonus compensation expense, partially offset by certain
restructuring costs incurred in the third quarter of 2013. Stock-based
compensation expense decreased from $3.2 millionin the third quarter of 2012
to$2.1 millionin the third quarter of 2013 primarily because the majority of
options granted in 2013 have a longer vesting period and a lower valuation as
compared to options granted in the same period of 2012. As a result of the
reduction of workforce implemented in September 2013, Rigel recorded
restructuring charges of $1.7 millionwhich consisted primarily of severance
payments to the affected employees.

For the nine months ended September 30, 2013, Rigel reported a net loss of
$72.2 million, or $0.83 per basic and diluted share, compared to a net loss of
$73.4 million, or $1.03 per basic and diluted share, for the same period of
2012.

As of September 30, 2013, Rigel had cash, cash equivalents and available for
sale securities of $230.9 million, compared to $298.2 million as of December
31, 2012. Rigel expects to end 2013 with cash and investments in excess
of$200.0 million, which is expected to be sufficient to fund operations into
2016.

Fostamatinib Update

Rigel representatives met with the FDA for an end-of-Phase 2 meeting for
fostamatinib, an oral SYK inhibitor in development for patients with immune
thrombocytopenic purpura (ITP). Rigel expects to initiate two pivotal Phase 3
studies in the first half of 2014. Each is expected to enroll approximately
75 patients who would be treated for six months and have the option to enroll
in an extension study. Both studies will be randomized, placebo-controlled
and will enroll verified ITP patients with platelet counts below 30,000
platelets per microliter of blood. Their primary goal will be to achieve a
durable platelet count increase to over 50,000 platelets per microliter of
blood. Rigel expects top line data from these studies in 2015.

"While we are disappointed with the results from the Phase 2 study with R333
in discoid lupus, we are focused on the launch of our Phase 3 studies of
fostamatinib in ITP next year," said James M. Gower, chairman and chief
executive officer of Rigel. "In 2014, we also expect to get top line data
from our Phase 2 study with R348 in dry eye, and put R118, the first drug
candidate from our muscle program, into the clinic," he added.

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. The Company currently has
five product candidates in development: fostamatinib, an oral SYK inhibitor
for ITP expected to enter Phase 3 clinical trials in the first half of 2014;
R348, a topical JAK/SYK inhibitor for dry eye currently in Phase 2 clinical
trials; R118, an AMPK activator entering Phase 1 in early 2014; and two
oncology product candidates in Phase 1 development with partners BerGenBio
andDaiichi Sankyo.

This press release contains "forward-looking" statements, including, without
limitation, statements related to development plans, the timing of planned
clinical trials and results, restructuring charges associated with Rigel's
reductions in force, and Rigel's ability to fund and maintain its current
development plans into 2016. 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 "planned," "will," "may," "expect," and similar
expressions are intended to identify these forward-looking statements. These
forward-looking statements are based on Rigel's current expectations and
inherently involve significant risks and uncertainties. Actual results and the
timing of events could differ materially from those anticipated in such
forward looking statements as a result of these risks and uncertainties, which
include, without limitation, the availability of resources to develop Rigel's
product candidates, Rigel's need for additional capital in the future to
sufficiently fund Rigel's operations and research, the uncertain timing of
completion of and the success of clinical trials, market competition, risks
associated with and Rigel's dependence on Rigel's corporate partnerships, as
well as other risks detailed from time to time in Rigel's reports filed with
theSecurities and Exchange Commission, including its Quarterly Report on
Form10-Q for thequarter endedJune 30, 2013. 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



RIGEL PHARMACEUTICALS, INC
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
                         Three Months Ended September  Nine Months Ended
                         30,                           September 30,
                         2013            2012          2013        2012
                         (unaudited)
Revenues:
                         $        $        $      $     
    Contract revenues     -                       1,400       
                                             -                2,250
Operating expenses:
    Research and
    development (see     17,574          20,186        57,282      59,014
    Note A)
    General and
    administrative (see  4,677           5,383         14,964      16,997
    Note A)
    Restructuring        1,679           -             1,679       -
    charges (see Note A)
     Total operating 23,930          25,569        73,925      76,011
    expenses
Loss from operations     (23,930)        (25,569)      (72,525)    (73,761)
Interest income, net     106             113           359         393
                         $            $        $      $     
Net loss                 (23,824)               (72,166)     
                                         (25,456)                  (73,368)
Net loss per share,      $          $        $      $     
basic and diluted        (0.27)                   (0.83)     
                                           (0.36)                (1.03)
Weighted-average shares used in
computing
 net loss per share,  87,430          71,636        87,240      71,505
basic and diluted
Note A
Stock-based compensation expense
included in:
    Research and         $          $        $      $     
    development          1,035                     3,060       
                                          1,866                  5,214
    General and          789             1,379         2,304       4,140
    administrative
    Restructuring        239             -             239         -
    charges
                         $          $        $      $     
                         2,063                     5,603       
                                          3,245                  9,354
    SUMMARY BALANCE SHEET DATA
    (in thousands)
                         September 30,   December 31,
                         2013            2012 (1)
                         (unaudited)
    Cash, cash
    equivalents and
    available
     for sale                      $     
    securities           $    230,882     
                                         298,241
    Total assets         239,537         310,043
    Stockholders' equity 223,402         289,096
(1) Derived from audited financial statements

SOURCE Rigel Pharmaceuticals, Inc.

Website: http://www.rigel.com
 
Press spacebar to pause and continue. Press esc to stop.