press release archive

Rigel Reports First Quarter 2001 Financial Results

South San Francisco, CA - May 08, 2001

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported its financial results for the first quarter ended March 31, 2001. Revenues from research collaborations were $3.2 million in the 2001 first quarter, compared to $3.6 million in the first quarter of 2000. The higher level of revenues in the 2000 first quarter compared to the 2001 period was due primarily to a payment received from a collaborative partner in the 2000 first quarter.

Total operating expenses were $7.9 million in the 2001 first quarter, compared with $11.6 million for the comparable 2000 period. Operating expenses in the 2000 first quarter included non-cash stock compensation expenses of $4.5 million.

For the 2001 first quarter, Rigel reported a net loss of $4.2 million, or $0.11 per common share, compared to a net loss of $18.0 million, or $4.60 per common share, in the first quarter of 2000. Included in the 2000 first quarter net loss was a $10.0 million non-cash, non-recurring accounting charge recorded as a deemed dividend to Series E preferred stockholders. This non-cash accounting entry reflects the difference between the price of our Series E preferred stock issued in February 2000 and the assumed market price of Rigel common stock in February 2000. Excluding this non-cash accounting charge, and including all shares of preferred stock that converted to common stock upon the closing of the company's IPO, Rigel’s net loss for the first quarter of 2000 was $7.9 million, or $0.29 per share.

Rigel reported cash, cash equivalents, and short-term investments of $46.6 million at March 31, 2001, compared with $53.0 million at December 31, 2000. The decrease in cash balances at the end of the 2001 first quarter compared to year-end 2000 reflects Rigel’s continued investment in its research and development programs.

Rigel uses post-genomics combinatorial biology technology to discover novel drug targets. Post-genomics combinatorial biology technology is designed to identify molecules which play an important role in regulating a human cell’s response to disease by testing a very large number of proteins in a very large number of cells to determine which proteins will change the cell’s response to the disease. Rigel currently has programs in asthma/allergy, autoimmunity, transplant rejection, rheumatoid arthritis, inflammatory bowel disease, chronic bronchitis, cancerous tumor growth and hepatitis C. In addition to its proprietary programs, Rigel has research and product development collaborations with Pfizer Inc., Cell Genesys, Inc., Janssen Pharmaceutica N.V. and Novartis Pharma A.G. Rigel is based in South San Francisco, California.

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements include those regarding the anticipated expenditures of capital and the addition of new employees during 2001. We caution readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to the risks and factors identified in Rigel's Annual Report on Form 10-K for the year ended December 31, 2000. The information in this press release is current as of its release date. Rigel does not intend to update the forward-looking information contained in this press release.