P24M0.030.110.150.35174364000172836000173897000172256000RIGEL PHARMACEUTICALS INCAccelerated FilerQ30001034842--12-31false2023-09-30NASDAQP2Y5M12DP24MP0Y5M26D2000000015000000P1Y8M1Dfalsefalsefalsefalse0001034842us-gaap:SalesReturnsAndAllowancesMember2023-01-012023-09-300001034842rigl:GovernmentAndOtherRebatesMember2023-01-012023-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2023-01-012023-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2022-01-012022-09-300001034842rigl:GovernmentAndOtherRebatesMember2022-01-012022-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2022-01-012022-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2023-09-300001034842rigl:GovernmentAndOtherRebatesMember2023-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2023-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2022-12-310001034842rigl:GovernmentAndOtherRebatesMember2022-12-310001034842rigl:ChargebacksDiscountsAndFeesMember2022-12-310001034842us-gaap:SalesReturnsAndAllowancesMember2022-09-300001034842rigl:GovernmentAndOtherRebatesMember2022-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2022-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2021-12-310001034842rigl:GovernmentAndOtherRebatesMember2021-12-310001034842rigl:ChargebacksDiscountsAndFeesMember2021-12-310001034842us-gaap:CommonStockMember2023-07-012023-09-300001034842us-gaap:CommonStockMember2023-04-012023-06-300001034842us-gaap:CommonStockMember2023-01-012023-03-310001034842us-gaap:CommonStockMember2022-04-012022-06-300001034842us-gaap:CommonStockMember2022-01-012022-03-310001034842us-gaap:RetainedEarningsMember2023-09-300001034842us-gaap:AdditionalPaidInCapitalMember2023-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001034842us-gaap:RetainedEarningsMember2023-06-300001034842us-gaap:AdditionalPaidInCapitalMember2023-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000010348422023-06-300001034842us-gaap:RetainedEarningsMember2023-03-310001034842us-gaap:AdditionalPaidInCapitalMember2023-03-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100010348422023-03-310001034842us-gaap:RetainedEarningsMember2022-12-310001034842us-gaap:AdditionalPaidInCapitalMember2022-12-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001034842us-gaap:RetainedEarningsMember2022-09-300001034842us-gaap:AdditionalPaidInCapitalMember2022-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001034842us-gaap:RetainedEarningsMember2022-06-300001034842us-gaap:AdditionalPaidInCapitalMember2022-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000010348422022-06-300001034842us-gaap:RetainedEarningsMember2022-03-310001034842us-gaap:AdditionalPaidInCapitalMember2022-03-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100010348422022-03-310001034842us-gaap:RetainedEarningsMember2021-12-310001034842us-gaap:AdditionalPaidInCapitalMember2021-12-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001034842us-gaap:CommonStockMember2023-09-300001034842us-gaap:CommonStockMember2023-06-300001034842us-gaap:CommonStockMember2023-03-310001034842us-gaap:CommonStockMember2022-12-310001034842us-gaap:CommonStockMember2022-09-300001034842us-gaap:CommonStockMember2022-06-300001034842us-gaap:CommonStockMember2022-03-310001034842us-gaap:CommonStockMember2021-12-310001034842us-gaap:EmployeeStockOptionMember2023-09-3000010348422023-05-012023-05-3100010348422023-04-012023-04-300001034842us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001034842us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001034842us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2023-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001034842us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:RezlidhiaMember2022-07-012022-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:RezlidhiaMember2022-01-012022-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Member2023-09-300001034842rigl:LicensedRightsMemberrigl:CentralNervousSystemPenetrantIntellectualPropertyMember2022-09-300001034842us-gaap:ProductMember2023-07-012023-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2023-07-012023-09-300001034842rigl:GrossProductMember2023-07-012023-09-300001034842rigl:DiscountsAndAllowancesMember2023-07-012023-09-300001034842rigl:DevelopmentMilestonesMember2023-07-012023-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2023-07-012023-09-300001034842us-gaap:ProductMember2023-01-012023-09-300001034842us-gaap:GovernmentContractMember2023-01-012023-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2023-01-012023-09-300001034842rigl:GrossProductMember2023-01-012023-09-300001034842rigl:DiscountsAndAllowancesMember2023-01-012023-09-300001034842rigl:DevelopmentMilestonesMember2023-01-012023-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2023-01-012023-09-300001034842us-gaap:ProductMember2022-07-012022-09-300001034842us-gaap:GovernmentContractMember2022-07-012022-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2022-07-012022-09-300001034842rigl:GrossProductMember2022-07-012022-09-300001034842rigl:DiscountsAndAllowancesMember2022-07-012022-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2022-07-012022-09-300001034842us-gaap:ProductMember2022-01-012022-09-300001034842us-gaap:LicenseMember2022-01-012022-09-300001034842us-gaap:GovernmentContractMember2022-01-012022-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2022-01-012022-09-300001034842rigl:GrossProductMember2022-01-012022-09-300001034842rigl:DiscountsAndAllowancesMember2022-01-012022-09-300001034842rigl:DevelopmentMilestonesMember2022-01-012022-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2022-01-012022-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:AchievementOfCertainNearTermRegulatoryMilestoneMember2022-10-012022-12-310001034842rigl:FormaTherapeuticsHoldingsIncMember2022-07-012022-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2022-04-012022-06-300001034842rigl:GrifolsS.a.Memberrigl:CreditableAdvanceRoyaltyPaymentMemberrigl:FostamatinibMember2020-02-012020-02-290001034842rigl:GrifolsS.a.Memberrigl:FostamatinibMember2020-02-012020-02-290001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001034842rigl:R552Membersrt:MaximumMember2023-09-300001034842rigl:R552Memberrigl:AmendedLillyAgreementMember2023-09-300001034842rigl:HeadquartersOfficeSpaceSubleaseSouthSanFranciscoCaliforniaMember2023-09-300001034842us-gaap:RetainedEarningsMember2023-07-012023-09-300001034842us-gaap:RetainedEarningsMember2023-04-012023-06-300001034842us-gaap:RetainedEarningsMember2023-01-012023-03-310001034842us-gaap:RetainedEarningsMember2022-07-012022-09-300001034842us-gaap:RetainedEarningsMember2022-04-012022-06-300001034842us-gaap:RetainedEarningsMember2022-01-012022-03-310001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheOneMember2023-09-300001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheFiveMember2023-03-280001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheThreeMember2022-05-310001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheFourMember2022-05-310001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheTwoMember2020-05-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2023-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2023-09-300001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2023-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2023-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2022-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2022-12-310001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2022-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2022-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001034842us-gaap:LineOfCreditMember2023-07-012023-09-300001034842us-gaap:LineOfCreditMember2023-01-012023-09-300001034842us-gaap:LineOfCreditMember2022-07-012022-09-300001034842us-gaap:LineOfCreditMember2022-01-012022-09-300001034842us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-09-300001034842rigl:ShareBasedCompensationOptionsAndRsusMember2023-09-300001034842rigl:ShareBasedCompensationOptionsAndRsusMember2023-01-012023-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2023-09-300001034842rigl:GrifolsS.a.Member2023-09-300001034842us-gaap:LineOfCreditMember2023-09-300001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMember2023-01-012023-09-300001034842rigl:PriorToThirdAmendmentMemberus-gaap:LineOfCreditMemberrigl:LondonInterBankOfferedRateMember2023-09-300001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-09-300001034842rigl:PriorToThirdAmendmentMemberus-gaap:LineOfCreditMemberrigl:LondonInterBankOfferedRateMember2023-01-012023-09-300001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2023-01-012023-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:CardinalHealthcareMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:AsdHealthcareAndOncologySupplyMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842rigl:CardinalHealthcareMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842rigl:AsdHealthcareAndOncologySupplyMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001034842rigl:CardinalHealthcareMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001034842rigl:AsdHealthcareAndOncologySupplyMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001034842rigl:CardinalHealthcareMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001034842rigl:AsdHealthcareAndOncologySupplyMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001034842us-gaap:EmployeeStockMember2023-09-3000010348422022-09-3000010348422021-12-310001034842us-gaap:USTreasuryBillSecuritiesMember2023-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-09-300001034842us-gaap:MoneyMarketFundsMember2023-09-300001034842us-gaap:CashMember2023-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2023-09-300001034842us-gaap:USTreasuryBillSecuritiesMember2022-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-12-310001034842us-gaap:MoneyMarketFundsMember2022-12-310001034842us-gaap:CashMember2022-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2022-12-310001034842us-gaap:USTreasuryBillSecuritiesMember2023-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2023-09-300001034842us-gaap:USTreasuryBillSecuritiesMember2022-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2022-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2022-12-310001034842us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001034842us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001034842us-gaap:EmployeeStockMember2023-07-012023-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001034842us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001034842us-gaap:EmployeeStockMember2023-01-012023-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001034842us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001034842us-gaap:EmployeeStockMember2022-07-012022-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001034842us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001034842us-gaap:EmployeeStockMember2022-01-012022-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:RezlidhiaMember2023-07-012023-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:RezlidhiaMember2023-01-012023-09-300001034842us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-07-012023-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300001034842us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-09-300001034842us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001034842us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001034842us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001034842us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-3000010348422023-04-012023-06-300001034842us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100010348422023-01-012023-03-310001034842us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001034842us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000010348422022-04-012022-06-300001034842us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100010348422022-01-012022-03-310001034842us-gaap:USTreasuryBillSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842us-gaap:USTreasuryBillSecuritiesMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842rigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001034842us-gaap:USTreasuryBillSecuritiesMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842rigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001034842rigl:R552Member2022-01-012022-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2022-12-310001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:FdaApprovalAndFirstCommercialSaleOfProductMemberrigl:RezlidhiaMember2022-12-310001034842us-gaap:EmployeeStockMember2023-01-012023-09-300001034842rigl:AccountsReceivableAndPrepaidAndOtherCurrentAssetsMember2023-01-012023-09-300001034842rigl:AccountsReceivableAndPrepaidAndOtherCurrentAssetsMember2022-01-012022-09-300001034842rigl:GrifolsS.a.Memberrigl:FostamatinibMembersrt:MaximumMember2019-01-012019-01-310001034842rigl:R552Memberrigl:AmendedLillyAgreementMember2023-01-012023-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:FdaApprovalAndFirstCommercialSaleOfProductMemberrigl:RezlidhiaMember2023-01-012023-03-310001034842rigl:FostamatinibMember2021-01-012021-01-3100010348422022-07-012022-09-3000010348422022-01-012022-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberus-gaap:ProductFinancingArrangementMember2023-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberus-gaap:ProductFinancingArrangementMember2022-12-310001034842rigl:R552Member2022-12-310001034842rigl:R552Member2023-09-300001034842rigl:R552Member2023-01-012023-09-300001034842rigl:KnightTherapeuticsInternationalSaMemberrigl:SpecifiedCommercialMilestonesMembersrt:MaximumMemberrigl:CommercialAndLicenseAgreementMember2023-01-012023-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByNonCentralNervousSystemDiseaseProductsMemberrigl:MilestonePaymentsOnProductByProductBasisMember2023-01-012023-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByCentralNervousSystemDiseaseProductsMemberrigl:MilestonePaymentsOnProductByProductBasisMember2023-01-012023-09-300001034842rigl:SpecifiedRegulatoryEventsMember2023-01-012023-09-300001034842rigl:SpecifiedProductLaunchEventsMember2023-01-012023-09-300001034842rigl:SpecifiedDevelopmentEventsMember2023-01-012023-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByNonCentralNervousSystemDiseaseProductsMember2023-01-012023-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByCentralNervousSystemDiseaseProductsMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberrigl:EuropeanMedicinesAgencyApprovalOfFostamatinibForTreatmentOfChronicImmuneThrombocytopenicPurpuraMemberrigl:FostamatinibMember2020-02-012020-02-290001034842rigl:GrifolsS.a.Memberrigl:SpecifiedCommercialMilestonesMember2019-01-012019-01-310001034842rigl:FormaTherapeuticsHoldingsIncMember2022-07-012022-07-270001034842rigl:KnightTherapeuticsInternationalSaMemberrigl:CommercialAndLicenseAgreementMember2023-01-012023-09-3000010348422021-04-012021-04-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberus-gaap:ProductFinancingArrangementMember2019-10-012019-10-310001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberrigl:CommercialAndLicenseAgreementMember2019-10-012019-10-310001034842rigl:GrifolsS.a.Member2019-01-012019-01-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Member2018-10-012018-10-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMemberrigl:FostamatinibMember2023-07-012023-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2023-07-012023-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2023-07-012023-09-300001034842rigl:FostamatinibMember2023-07-012023-09-300001034842rigl:CentralNervousSystemPenetrantIntellectualPropertyMember2023-07-012023-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMemberrigl:FostamatinibMember2023-01-012023-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2023-01-012023-09-300001034842rigl:FostamatinibMember2023-01-012023-09-300001034842rigl:CentralNervousSystemPenetrantIntellectualPropertyMember2023-01-012023-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberus-gaap:ProductFinancingArrangementMember2022-10-012022-12-3100010348422022-10-012022-12-310001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2022-07-012022-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2022-07-012022-09-300001034842rigl:GrifolsS.a.Memberrigl:ResearchActivitiesMember2022-07-012022-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2022-07-012022-09-300001034842rigl:FostamatinibMember2022-07-012022-09-300001034842rigl:CentralNervousSystemPenetrantIntellectualPropertyMember2022-07-012022-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMemberrigl:FostamatinibMember2022-01-012022-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2022-01-012022-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2022-01-012022-09-300001034842rigl:GrifolsS.a.Memberrigl:ResearchActivitiesMember2022-01-012022-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2022-01-012022-09-300001034842rigl:FostamatinibMember2022-01-012022-09-300001034842rigl:CentralNervousSystemPenetrantIntellectualPropertyMember2022-01-012022-09-300001034842rigl:FostamatinibMember2021-01-012023-09-300001034842rigl:NonCentralNervousSystemPenetrantIntellectualPropertyMember2021-01-012021-03-310001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:SpecifiedCommercialMilestonesMember2022-07-012022-07-270001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:DevelopmentAndRegulatoryMilestonesMember2022-07-012022-07-2700010348422022-01-012022-12-3100010348422023-09-3000010348422022-12-3100010348422023-07-012023-09-3000010348422023-11-0200010348422023-01-012023-09-30xbrli:sharesiso4217:USDxbrli:purerigl:agreementrigl:periodrigl:itemrigl:positioniso4217:USDxbrli:shares

Table of Contents 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM        TO        

Commission File Number 0-29889

Rigel Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Delaware

94-3248524

(State or other jurisdiction of incorporation or

(I.R.S. Employer Identification No.)

organization)

611 Gateway Boulevard, Suite 900,

South San Francisco, CA

94080

(Address of principal executive offices)

(Zip Code)

(650) 624-1100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

    

Trading Symbol

    

Name of each exchange on which registered:

Common Stock, par value $0.001 per share

RIGL

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

As of November 2, 2023, there were 174,369,503 shares of the registrant’s Common Stock outstanding.

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023

INDEX

Page

PART I

FINANCIAL INFORMATION

3

Item 1.

Financial Statements

3

Condensed Balance Sheets — September 30, 2023 (Unaudited) and December 31, 2022

3

Condensed Statements of Operations (Unaudited) — three and nine months ended September 30, 2023 and 2022

4

Condensed Statements of Comprehensive Loss (Unaudited) — three and nine months ended September 30, 2023 and 2022

5

Condensed Statements of Stockholders’ (Deficit) Equity (Unaudited) — three and nine months ended September 30, 2023 and 2022

6

Condensed Statements of Cash Flows (Unaudited) — nine months ended September 30, 2023 and 2022

7

Notes to Condensed Financial Statements (Unaudited)

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

46

Item 4.

Controls and Procedures

46

PART II

OTHER INFORMATION

46

Item 1.

Legal Proceedings

46

Item 1A.

Risk Factors

47

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

92

Item 3.

Defaults Upon Senior Securities

92

Item 4.

Mine Safety Disclosures

92

Item 5.

Other Information

93

Item 6.

Exhibits

93

Signatures

95

2

Table of Contents 

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

RIGEL PHARMACEUTICALS, INC.

CONDENSED BALANCE SHEETS

(In thousands)

As of

September 30, 2023

    

December 31, 2022 (1)

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

45,414

$

24,459

Short-term investments

 

16,937

 

33,747

Accounts receivable, net

 

23,546

 

40,320

Inventories

6,112

 

9,118

Prepaid and other current assets

 

3,015

 

8,259

Total current assets

 

95,024

 

115,903

Property and equipment, net

 

190

 

857

Intangible asset, net

14,146

14,949

Operating lease right-of-use assets

1,008

1,930

Other assets

 

4,956

 

640

Total assets

$

115,324

$

134,279

Liabilities and stockholders’ deficit

Current liabilities:

Accounts payable

$

7,999

$

22,508

Accrued compensation

 

8,093

 

8,866

Accrued research and development

 

5,754

 

7,708

Revenue reserves and refund liability

14,543

12,145

Other accrued liabilities

 

5,030

 

6,485

Lease liabilities, current portion

673

1,133

Deferred revenue

1,355

1,369

Other long-term liabilities, current portion

4,826

4,997

Total current liabilities

 

48,273

 

65,211

Long-term portion of lease liabilities

 

466

 

972

Loans payable, net of discount

59,659

39,448

Other long-term liabilities

 

38,760

 

42,264

Total liabilities

147,158

147,895

Commitments

Stockholders’ deficit:

Preferred stock

 

 

Common stock

 

175

 

174

Additional paid-in capital

 

1,376,293

 

1,368,822

Accumulated other comprehensive loss

 

(15)

 

(153)

Accumulated deficit

 

(1,408,287)

 

(1,382,459)

Total stockholders’ deficit

 

(31,834)

 

(13,616)

Total liabilities and stockholders’ deficit

$

115,324

$

134,279

(1)The balance sheet as of December 31, 2022 has been derived from the audited financial statements included in Rigel’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (SEC) on March 7, 2023.

See Accompanying Notes to Condensed Financial Statements

3

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2023

    

2022

    

2023

    

2022

Revenues:

Product sales, net

$

27,129

$

19,188

$

74,755

$

53,935

Contract revenues from collaborations

1,005

722

5,335

12,529

Government contract

2,500

1,000

2,500

Total revenues

28,134

22,410

81,090

68,964

Costs and expenses:

Cost of product sales

1,268

250

3,320

1,407

Research and development

 

6,475

 

14,666

21,336

 

44,907

Selling, general and administrative

 

24,856

 

25,897

78,891

 

80,279

Total costs and expenses

 

32,599

 

40,813

 

103,547

 

126,593

Loss from operations

 

(4,465)

 

(18,403)

 

(22,457)

 

(57,629)

Interest income

 

672

 

192

 

1,594

 

255

Interest expense

(1,899)

(826)

(4,965)

(2,600)

Net loss

$

(5,692)

$

(19,037)

$

(25,828)

$

(59,974)

Net loss per share, basic and diluted

$

(0.03)

$

(0.11)

$

(0.15)

$

(0.35)

Weighted average shares used in computing net loss per share, basic and diluted

174,364

172,836

173,897

172,256

See Accompanying Notes to Condensed Financial Statements

4

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2023

    

2022

    

2023

    

2022

Net loss

$

(5,692)

$

(19,037)

$

(25,828)

$

(59,974)

Other comprehensive gain (loss):

Net unrealized gain (loss) on short-term investments

 

10

 

152

 

138

 

(184)

Comprehensive loss

$

(5,682)

$

(18,885)

$

(25,690)

$

(60,158)

See Accompanying Notes to Condensed Financial Statements

5

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY

(In thousands, except share amounts)

(unaudited)

Additional

Accumulated Other

Total

Common Stock

Paid-in

Comprehensive

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital

    

Loss

    

Deficit

    

Deficit

Balance as of January 1, 2023

 

173,398,645

$

174

$

1,368,822

$

(153)

$

(1,382,459)

$

(13,616)

Net loss

 

(13,536)

 

(13,536)

Net change in unrealized gain on short-term investments

 

126

 

126

Issuance of common stock upon exercise of options

 

952

1

 

1

Issuance of common stock upon vesting of restricted stock units (RSUs)

266,256

Stock-based compensation expense

 

2,768

 

2,768

Balance as of March 31, 2023

 

173,665,853

174

1,371,591

(27)

(1,395,995)

(24,257)

Net loss

 

(6,600)

(6,600)

Net change in unrealized gain on short-term investments

 

2

2

Issuance of common stock upon exercise of options and participation in Purchase Plan

 

523,795

1

553

554

Issuance of common stock upon vesting of RSUs

168,750

Stock-based compensation expense

 

2,186

2,186

Balance as of June 30, 2023

174,358,398

$

175

$

1,374,330

$

(25)

$

(1,402,595)

$

(28,115)

Net loss

 

(5,692)

(5,692)

Net change in unrealized gain on short-term investments

 

10

10

Issuance of common stock upon exercise of options

 

8,830

8

8

Stock-based compensation expense

 

1,955

1,955

Balance as of September 30, 2023

 

174,367,228

$

175

$

1,376,293

$

(15)

$

(1,408,287)

$

(31,834)

Additional

Accumulated Other

Total

Common Stock

Paid-in

Comprehensive

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital

    

Loss

    

Deficit

    

Equity (Deficit)

Balance as of January 1, 2022

    

171,602,226

$

172

$

1,354,190

$

(102)

$

(1,323,886)

$

30,374

Net loss

 

(27,445)

 

(27,445)

Net unrealized loss on short-term investments

 

(314)

 

(314)

Issuance of common stock upon exercise of options

 

420,521

940

 

940

Issuance of common stock upon vesting of RSUs

22,500

Stock-based compensation expense

 

3,243

 

3,243

Balance as of March 31, 2022

 

172,045,247

172

1,358,373

(416)

(1,351,331)

6,798

Net loss

 

(13,492)

(13,492)

Net unrealized loss on short-term investments

 

(22)

(22)

Issuance of common stock upon exercise of options and participation in Purchase Plan

 

609,839

1

598

599

Issuance of common stock upon vesting of RSUs

181,250

Stock-based compensation expense

 

2,440

2,440

Balance as of June 30, 2022

172,836,336

$

173

$

1,361,411

$

(438)

$

(1,364,823)

$

(3,677)

Net loss

 

(19,037)

(19,037)

Net unrealized gain on short-term investments

 

152

152

Stock-based compensation expense

 

2,728

2,728

Balance as of September 30, 2022

 

172,836,336

$

173

$

1,364,139

$

(286)

$

(1,383,860)

$

(19,834)

See Accompanying Notes to Condensed Financial Statements

6

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Nine Months Ended September 30, 

2023

    

2022

Operating activities

Net loss

$

(25,828)

$

(59,974)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense

 

6,873

8,305

Loss (gain) on sale and disposal of fixed assets

376

(465)

Depreciation and amortization

 

945

714

Non-cash interest expense

682

Net amortization and accretion of discount on short-term investments and term loan

(219)

116

Changes in assets and liabilities:

Accounts receivable, net

 

16,774

(53)

Inventories

(1,359)

(394)

Prepaid and other current assets

 

5,244

1,255

Other assets

 

85

490

Right-of-use assets

 

922

6,712

Accounts payable

 

491

(999)

Accrued compensation

 

(773)

(1,917)

Accrued research and development

 

(1,954)

(2,810)

Revenue reserves and refund liability

2,398

3,274

Other accrued liabilities

 

(1,455)

1,637

Lease liability

(966)

(7,337)

Deferred revenue

(14)

(1,227)

Other current and long-term liabilities

 

(1,043)

 

142

Net cash provided by (used in) operating activities

 

497

 

(51,849)

Investing activities

Maturities of short-term investments

 

35,650

80,062

Purchases of short-term investments

 

(18,222)

(26,049)

Purchases of intangible asset

 

(15,000)

Proceeds from sale of property and equipment

149

543

Purchases of property and equipment

 

(377)

Net cash provided by investing activities

 

2,577

 

54,179

Financing activities

Net proceeds from term loan financing

19,950

19,542

Net proceeds from issuances of common stock upon exercise of options and participation in Purchase Plan

 

563

1,539

Cost share payments to a collaboration partner

(2,632)

(12,435)

Net cash provided by financing activities

 

17,881

 

8,646

Net increase in cash and cash equivalents

 

20,955

 

10,976

Cash and cash equivalents at beginning of period

 

24,459

18,890

Cash and cash equivalents at end of period

$

45,414

$

29,866

Supplemental disclosure of cash flow information

Interest paid

$

4,167

$

1,549

See Accompanying Notes to Condensed Financial Statements

7

Table of Contents 

Rigel Pharmaceuticals, Inc.

Notes to Condensed Financial Statements

(unaudited)

In this report, “Rigel,” “we,” “us” and “our” refer to Rigel Pharmaceuticals, Inc.

1.

Organization and Summary of Significant Accounting Policies

Description of Business

We are a biotechnology company dedicated to discovering, developing and providing novel therapies that significantly improve the lives of patients with hematologic disorders and cancer. We focus on products that address signaling pathways that are critical to disease mechanisms.

Our first product approved by the US Food and Drug Administration (FDA) is TAVALISSE® (fostamatinib disodium hexahydrate) tablets, the only approved oral spleen tyrosine kinase (SYK) inhibitor for the treatment of adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment. The product is also commercially available in Europe and the United Kingdom (UK) (as TAVLESSE), and in Canada, Israel and Japan (as TAVALISSE) for the treatment of chronic ITP in adult patients.

Our second FDA approved product is REZLIDHIA® (olutasidenib) capsules for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test. We began our commercialization of REZLIDHIA in December 2022. We in-licensed olutasidenib from Forma Therapeutics, Inc. (now Novo Nordisk), with exclusive, worldwide rights for its development, manufacturing and commercialization.

We continue to advance the development of our interleukin receptor-associated kinase (IRAK) 1/4 inhibitor program, in an open-label, Phase 1b trial to determine the tolerability and preliminary efficacy of the drug in patients with lower-risk myelodysplastic syndrome (MDS) who are refractory or resistant to prior therapies.

We have a receptor-interacting serine/threonine-protein kinase 1 (RIPK1) inhibitor program in clinical development with our partner Eli Lilly and Company (Lilly). We also have product candidates in clinical development with partners BerGenBio ASA (BerGenBio) and Daiichi Sankyo (Daiichi).

Basis of Presentation

Our accompanying unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (US GAAP), for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Act of 1933, as amended (Securities Act). Accordingly, they do not include all the information and notes required by US GAAP for complete financial statements. These unaudited condensed financial statements include only normal and recurring adjustments that we believe are necessary to fairly state our financial position and the results of our operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year or any subsequent interim period. The balance sheet as of December 31, 2022 has been derived from audited financial statements at that date but does not include all disclosures required by US GAAP for complete financial statements. Because certain disclosures required by US GAAP for complete financial statements are not included herein, these interim unaudited condensed financial statements and the notes accompanying them should be read in conjunction with our audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 7, 2023.

8

Table of Contents 

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates.

Significant Accounting Policies

Our significant accounting policies are described in “Note 1 – Description of Business and Summary of Significant Accounting Policies” to our “Notes to Financial Statements” contained in “Part II, Item 8, Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes to these accounting policies.

Liquidity

As of September 30, 2023, we had approximately $62.4 million in cash, cash equivalents and short-term investments. Since inception, we have financed our operations primarily through sales of equity securities, debt financing, contract payments under our collaboration agreements and from product sales.

Based on our current operating plan, we believe that our existing cash, cash equivalents, and short-term investments will be sufficient to fund our expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of this Form 10-Q.

Recently Issued Accounting Standards

Recently issued accounting guidance is either not applicable or did not have, or is not expected to have, a material impact to us.

2.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period and the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive securities include stock options, RSUs and shares issuable under our Employee Stock Purchase Plan (Purchase Plan). The dilutive effect of these potentially dilutive securities is reflected in diluted earnings per share using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities.

The potential shares of common stock that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive are as follows (in thousands):

Three Months Ended September 30, 

Nine Months Ended September 30, 

2023

    

2022

2023

    

2022

Outstanding stock options

34,284

32,687

34,284

32,687

RSUs

1,937

1,174

1,937

1,174

Purchase Plan

309

398

309

398

Total

36,530

34,259

36,530

34,259

9

Table of Contents 

3.

Revenues

Revenues disaggregated by category were as follows (in thousands):

Three Months Ended September 30, 

Nine Months Ended September 30, 

2023

    

2022

2023

    

2022

Product sales:

Gross product sales

$

38,585

$

26,977

$

105,239

76,022

Discounts and allowances

(11,456)

(7,789)

(30,484)

(22,087)

Total product sales, net

27,129

19,188

74,755

53,935

Revenues from collaborations:

License revenues

2,545

Development milestones

75

75

5,000

Royalty, delivery of drug supplies and others

930

722

5,260

4,984

Total revenues from collaborations

1,005

722

5,335

12,529

Government contract

2,500

1,000

2,500

Total revenues

$

28,134

$

22,410

$

81,090

$

68,964

Revenue from product sales are related to sales of our commercial products, TAVALISSE and REZLIDHIA, to our specialty distributors. For detailed discussions of our revenues from collaboration and government contract, see “Note 4 – Sponsored Research and License Agreements and Government Contract.”

Our net product sales include gross product sales, net of chargebacks, discounts and fees, government and other rebates and returns. Of the total discounts and allowances from gross product sales for the nine months ended September 30, 2023 and 2022, $29.7 million and $19.7 million, respectively, was accounted for as additions to revenue reserves and refund liability, and $0.8 million and $2.4 million, respectively, as reductions in accounts receivable (as it relates to allowance for prompt pay discount) and prepaid and other current assets (as it relates to certain chargebacks and other fees that were prepaid) in the condensed balance sheet. The following tables summarize the activities in chargebacks, discounts and fees, government and other rebates and returns that were accounted for within revenue reserves and refund liability, for each of the periods presented (in thousands):

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance as of January 1, 2023

    

$

6,213

$

2,636

$

3,296

$

12,145

Provision related to current period sales

23,150

5,932

623

29,705

Credit or payments made during the period

(21,504)

(5,631)

(172)

(27,307)

Balance as of September 30, 2023

 

$

7,859

$

2,937

$

3,747

$

14,543

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance as of January 1, 2022

    

$

3,404

$

2,494

$

2,017

$

7,915

Provision related to current period sales

14,475

4,130

1,045

19,650

Credit or payments made during the period

(11,920)

(4,257)

(199)

(16,376)

Balance as of September 30, 2022

 

$

5,959

$

2,367

$

2,863

$

11,189

The following table summarizes the percentages of revenues from each of our customers who individually accounted for 10% or more (wherein * denotes less than 10%) of the total net product sales and revenues from collaborations:

Three Months Ended September 30, 

Nine Months Ended September 30, 

2023

    

2022

2023

    

2022

McKesson Specialty Care Distribution Corporation

49%

44%

46%

38%

Cardinal Healthcare

28%

27%

27%

22%

ASD Healthcare and Oncology Supply

18%

25%

20%

21%

Kissei

*

*

*

11%

10

Table of Contents 

4.

Sponsored Research and License Agreements and Government Contract

Sponsored Research and License Agreements

We conduct research and development programs independently and in connection with our corporate collaborators. As of September 30, 2023, we are a party to collaboration agreements with Lilly to develop and commercialize R552, a RIPK1 inhibitor, for the treatment of non-central nervous system (non-CNS) diseases and collaboration aimed at developing additional RIPK1 inhibitors for the treatment of central nervous system (CNS) diseases; with Grifols S.A. (Grifols) to commercialize fostamatinib for human diseases in all indications, including chronic ITP and autoimmune hemolytic anemia (AIHA), in Grifols territory which includes Europe, the UK, Turkey, the Middle East, North Africa and Russia (including Commonwealth of Independent States); with Kissei Pharmaceutical Co., Ltd. (Kissei) to develop and commercialize fostamatinib in Kissei territory which includes Japan, China, Taiwan and the Republic of Korea; with Medison Pharma Trading AG (Medison Canada) and Medison Pharma Ltd. (Medison Israel and, together with Medison Canada, Medison) to commercialize fostamatinib in all indications, including chronic ITP and AIHA, in Medison territory which includes Canada and Israel; and with Knight Therapeutics International SA (Knight) to commercialize fostamatinib in all indications, including chronic ITP and AIHA, in Knight territory which includes Latin America, consisting of Mexico, Central and South America, and the Caribbean (Knight territory).

Further, we are also a party to collaboration agreements, but do not have ongoing performance obligations with BerGenBio for the development and commercialization of AXL receptor tyrosine kinase (AXL) inhibitors in oncology, and with Daiichi to pursue research related to murine double minute 2 (MDM2) inhibitors, a novel class of drug targets called ligases.

Under the above existing agreements that we entered into in the ordinary course of business, we received or may be entitled to receive upfront cash payments, payments contingent upon specified events achieved by such partners and royalties on any net sales of products sold by such partners under the agreements. As of September 30, 2023, total future contingent payments to us under all of the above existing agreements, excluding terminated agreements, could exceed $1.3 billion if all potential product candidates achieved all of the payment triggering events under all of our current agreements. Of this amount, $279.5 million relates to the achievement of development events, $263.1 million relates to the achievement of regulatory events and $796.0 million relates to the achievement of certain commercial events. This estimated future contingent amount does not include any estimated royalties that could be due to us if the partners successfully commercialize any of the licensed products. Future events that may trigger payments to us under the agreements are based solely on our partners’ future efforts and achievements of specified development, regulatory and/or commercial events.

Global Exclusive License Agreement with Lilly

We have a global exclusive license agreement and strategic collaboration with Lilly (Lilly Agreement) entered in February 2021, which became effective on March 27, 2021, upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, to develop and commercialize R552 for the treatment of non-CNS diseases. In addition, the collaboration is aimed at developing additional RIPK1 inhibitors for the treatment of CNS diseases. Pursuant to the terms of the Lilly Agreement, we granted Lilly the exclusive rights to develop and commercialize R552 and related RIPK1 inhibitors in all indications worldwide. The parties’ collaboration is governed through a joint governance committee and appropriate subcommittees.