Rigel Announces Third Quarter 2010 Financial Results
SOUTH SAN FRANCISCO, Calif., Nov. 2, 2010 /PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the third quarter and nine months ended September 30, 2010.
For the third quarter of 2010, Rigel reported net income of $50.4 million, or $0.97 and $0.96 per basic and diluted share, respectively, compared to a net loss of $26.7 million, or $0.70 per basic and diluted share, in the third quarter of 2009. Basic weighted average shares outstanding for the third quarters of 2010 and 2009 were 52.1 million and 38.1 million, respectively. Diluted weighted average shares outstanding for the third quarters of 2010 and 2009 were 52.8 million and 38.1 million, respectively.
Contract revenue in the third quarter of 2010 was $72.3 million. This consisted of $47.3 million related to amortization of the $100.0 million upfront payment received from AstraZeneca AB (AZ) pursuant to the exclusive worldwide license agreement for fostamatinib (formerly known as R788) and $25.0 million in milestones earned from AZ in connection with the initiation of the Phase 3 clinical trial program with fostamatinib in patients with RA as well as completing the transfer of the fostamatinib open label extension study to AZ. As of September 30, 2010, the $100.0 million upfront payment had been fully recognized as revenue. There was no contract revenue reported in the third quarter of 2009.
Rigel reported total operating expenses of $21.9 million in the third quarter of 2010, compared to $26.7 million in the third quarter of 2009. The decrease in operating expenses was primarily due to the elimination of certain costs related to fostamatinib as a result of a worldwide license agreement with AZ entered into March 2010 and the completion of the TASKi2 and TASKi3 clinical trials in July 2009.
For the nine months ended September 30, 2010, Rigel reported net income of $55.1 million, or $1.06 and $1.05 per basic and diluted share, respectively, compared to a net loss of $86.5 million or $2.32 per basic and diluted share for the same period of 2009.
As of September 30, 2010, Rigel had cash, cash equivalents and available for sale securities of $167.5 million, compared to $133.3 million as of December 31, 2009.
Rigel was recently notified by the Internal Revenue Service that the Company has been certified to receive a total cash grant of approximately $2.4 million related to the previously filed applications under the Qualifying Therapeutic Discovery Projects (Section 48D of the Internal Revenue Code). Of this amount, $2.1 million will be received in 2010 with the remainder to be received in 2011. Rigel is increasing the year-end cash expectation by the amount of the grant to be received in 2010 and therefore expects to end 2010 with approximately $172.0 million in cash, cash equivalents and available for sale securities.
"Our successful transition of fostamatinib development to AstraZenca has been substantiated by the recent initiation of three large global phase 3 clinical studies by our partner," said James M. Gower, Rigel's chairman and chief executive officer of Rigel. "As we look to the future, Rigel's R&D teams are focused on potentially putting four of our novel programs into the clinic over the next two years," he added.
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 and autoimmune disorders, as well as muscle and metabolic diseases. 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 has started its phase 3 clinical trial program for rheumatoid arthritis, and R343, an inhaled syk inhibitor that is in clinical trials for asthma.
This press release contains "forward-looking" statements, including, without limitation, statements related to Rigel's expectations as to its year end cash, cash equivalents and available for sale securities and identification of a novel programs for clinical development. 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," "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, risks associated with Rigel's need for additional capital, the timing and success of preclinical studies and clinical trials, and other risks detailed from time to time in Rigel's SEC reports, including its Annual Report on Form 10-Q for the quarter ended June 30, 2010. 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.
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STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended September Nine Months Ended September 30, 30, 2010 2009 2010 2009 (unaudited) Revenues: Contract revenues $ 72,282 $ - $ 125,000 $ - Operating expenses: Research and development (see Note A) 16,394 21,082 50,634 70,568 General and administrative (see Note A) 5,530 5,573 19,380 15,226 Restructuring charges (see Note A) - - - 1,141 Total operating expenses 21,924 26,655 70,014 86,935 Income (loss) from operations 50,358 (26,655) 54,986 (86,935) Interest income, net 75 4 143 388 Income (loss) before income taxes 50,433 (26,651) 55,129 (86,547) Income tax benefit - - - 93 Net income (loss) $ 50,433 $ (26,651) $ 55,129 $ (86,454) Net income (loss) per share: Basic $ 0.97 $ (0.70) $ 1.06 $ (2.32) Diluted $ 0.96 $ (0.70) $ 1.05 $ (2.32) Weighted-average shares used in computing net income (loss) per share: Basic 52,127 38,135 52,022 37,185 Diluted 52,769 38,135 52,536 37,185 Note A Stock-based compensation expense included in: Research and development $ 2,017 $ 2,356 $ 7,017 $ 6,309 General and administrative 1,750 1,176 5,618 3,226 Restructuring charges - - - 122 $ 3,767 $ 3,532 $ 12,635 $ 9,657
SUMMARY BALANCE SHEET DATA (in thousands) September 30, December 31, 2010 2009(1) (unaudited) Cash, cash equivalents and available for sale securities $ 167,535 $ 133,318 Total assets 201,004 140,744 Stockholders' equity 178,884 109,867 (1) Derived from audited financial statements
SOURCE Rigel Pharmaceuticals, Inc.
Released November 2, 2010