P24MRIGEL PHARMACEUTICALS INCAccelerated FilerQ30001034842--12-31false2024-09-30NASDAQP2Y1M24DP24MP0Y8M1D0.10.10.10.1P24MP1Y2M12D0001034842us-gaap:SalesReturnsAndAllowancesMember2024-01-012024-09-300001034842rigl:GovernmentAndOtherRebatesMember2024-01-012024-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2024-01-012024-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2023-01-012023-09-300001034842rigl:GovernmentAndOtherRebatesMember2023-01-012023-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2023-01-012023-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2024-09-300001034842rigl:GovernmentAndOtherRebatesMember2024-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2024-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2023-12-310001034842rigl:GovernmentAndOtherRebatesMember2023-12-310001034842rigl:ChargebacksDiscountsAndFeesMember2023-12-310001034842us-gaap:SalesReturnsAndAllowancesMember2023-09-300001034842rigl:GovernmentAndOtherRebatesMember2023-09-300001034842rigl:ChargebacksDiscountsAndFeesMember2023-09-300001034842us-gaap:SalesReturnsAndAllowancesMember2022-12-310001034842rigl:GovernmentAndOtherRebatesMember2022-12-310001034842rigl:ChargebacksDiscountsAndFeesMember2022-12-310001034842us-gaap:CommonStockMember2023-07-012023-09-300001034842us-gaap:CommonStockMember2024-07-012024-09-300001034842us-gaap:CommonStockMember2024-04-012024-06-300001034842us-gaap:CommonStockMember2024-01-012024-03-310001034842us-gaap:CommonStockMember2023-04-012023-06-300001034842us-gaap:CommonStockMember2023-01-012023-03-3100010348422024-06-272024-06-270001034842us-gaap:RetainedEarningsMember2024-09-300001034842us-gaap:AdditionalPaidInCapitalMember2024-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001034842us-gaap:RetainedEarningsMember2024-06-300001034842us-gaap:AdditionalPaidInCapitalMember2024-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000010348422024-06-300001034842us-gaap:RetainedEarningsMember2024-03-310001034842us-gaap:AdditionalPaidInCapitalMember2024-03-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100010348422024-03-310001034842us-gaap:RetainedEarningsMember2023-12-310001034842us-gaap:AdditionalPaidInCapitalMember2023-12-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001034842us-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:CommonStockMember2024-09-300001034842us-gaap:CommonStockMember2024-06-300001034842us-gaap:CommonStockMember2024-03-310001034842us-gaap:CommonStockMember2023-12-310001034842us-gaap:CommonStockMember2023-09-300001034842us-gaap:CommonStockMember2023-06-300001034842us-gaap:CommonStockMember2023-03-310001034842us-gaap:CommonStockMember2022-12-310001034842us-gaap:EmployeeStockOptionMember2024-09-3000010348422024-07-012024-07-3100010348422024-05-012024-05-310001034842us-gaap:EmployeeStockOptionMember2024-07-012024-09-300001034842us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001034842us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2024-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001034842us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001034842rigl:OcadusertibMember2021-03-310001034842us-gaap:ProductMember2024-07-012024-09-300001034842us-gaap:LicenseMember2024-07-012024-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2024-07-012024-09-300001034842rigl:GrossProductMember2024-07-012024-09-300001034842rigl:DiscountsAndAllowancesMember2024-07-012024-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2024-07-012024-09-300001034842us-gaap:ProductMember2024-01-012024-09-300001034842us-gaap:LicenseMember2024-01-012024-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2024-01-012024-09-300001034842rigl:GrossProductMember2024-01-012024-09-300001034842rigl:DiscountsAndAllowancesMember2024-01-012024-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2024-01-012024-09-300001034842us-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:ProductMember2023-01-012023-09-300001034842rigl:RoyaltyDeliveryOfDrugSuppliesAndOthersMember2023-01-012023-09-300001034842rigl:GrossProductMember2023-01-012023-09-300001034842rigl:DiscountsAndAllowancesMember2023-01-012023-09-300001034842rigl:DevelopmentMilestonesMember2023-01-012023-09-300001034842rigl:ContractRevenuesFromCollaborationsMember2023-01-012023-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:AchievementOfCertainNearTermRegulatoryMilestoneMember2022-10-012022-12-310001034842rigl:FormaTherapeuticsHoldingsIncMember2022-01-012022-12-310001034842rigl:GrifolsS.a.Memberrigl:CreditableAdvanceRoyaltyPaymentMemberrigl:FostamatinibMember2020-02-012020-02-290001034842rigl:GrifolsS.a.Memberrigl:FostamatinibMember2020-02-012020-02-290001034842rigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-07-012024-07-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001034842us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001034842rigl:OcadusertibMembersrt:MaximumMember2024-09-300001034842rigl:OcadusertibMemberrigl:AmendedLillyAgreementMember2024-09-300001034842rigl:HeadquartersOfficeSpaceSubleaseSouthSanFranciscoCaliforniaMember2024-09-300001034842us-gaap:RetainedEarningsMember2024-07-012024-09-300001034842us-gaap:RetainedEarningsMember2024-04-012024-06-300001034842us-gaap:RetainedEarningsMember2024-01-012024-03-310001034842us-gaap:RetainedEarningsMember2023-07-012023-09-300001034842us-gaap:RetainedEarningsMember2023-04-012023-06-300001034842us-gaap:RetainedEarningsMember2023-01-012023-03-310001034842us-gaap:InventoriesMemberus-gaap:SubsequentEventMember2024-10-012024-10-310001034842us-gaap:LineOfCreditMember2024-09-300001034842us-gaap:LineOfCreditMemberrigl:CreditAgreementTrancheOneMember2024-09-300001034842us-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:USTreasuryBillSecuritiesMember2024-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2024-09-300001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2024-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2024-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2023-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2023-12-310001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryBillSecuritiesMember2023-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberrigl:CorporateBondSecuritiesAndCommercialPaperMember2023-12-310001034842us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001034842us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001034842us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001034842us-gaap:LineOfCreditMember2024-07-012024-09-300001034842us-gaap:LineOfCreditMember2024-01-012024-09-300001034842us-gaap:LineOfCreditMember2023-07-012023-09-300001034842us-gaap:LineOfCreditMember2023-01-012023-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:FdaApprovalAndFirstCommercialSaleOfProductMemberrigl:RezlidhiaMember2022-12-310001034842us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2024-09-300001034842rigl:ShareBasedCompensationOptionsAndRsusMember2024-09-300001034842rigl:ShareBasedCompensationOptionsAndRsusMember2024-01-012024-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2024-09-300001034842rigl:GrifolsS.a.Member2024-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2023-12-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2023-12-310001034842rigl:GrifolsS.a.Member2023-12-310001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMember2024-01-012024-09-300001034842rigl:FollowingFourthAmendmentMember2024-01-012024-09-300001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-09-300001034842rigl:FollowingFourthAmendmentMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-09-300001034842rigl:FollowingThirdAmendmentMemberus-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-01-012024-09-300001034842rigl:FollowingFourthAmendmentMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2024-01-012024-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:SublicenseRevenueFeeMember2024-07-012024-09-300001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:SublicenseRevenueFeeMember2024-01-012024-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001034842rigl:CencoraIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001034842rigl:CardinalHealthIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001034842rigl:CencoraIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:CencoraIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:CardinalHealthIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-07-012023-09-300001034842rigl:MckessonSpecialtyCareDistributionCorporationMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842rigl:CencoraIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842rigl:CardinalHealthIncMemberus-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-09-300001034842us-gaap:EmployeeStockMember2024-09-3000010348422023-09-3000010348422022-12-310001034842us-gaap:USTreasuryBillSecuritiesMember2024-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-09-300001034842us-gaap:MoneyMarketFundsMember2024-09-300001034842us-gaap:CashMember2024-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2024-09-300001034842us-gaap:USTreasuryBillSecuritiesMember2023-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001034842us-gaap:MoneyMarketFundsMember2023-12-310001034842us-gaap:CashMember2023-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2023-12-310001034842us-gaap:USTreasuryBillSecuritiesMember2024-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2024-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2024-09-300001034842us-gaap:USTreasuryBillSecuritiesMember2023-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember2023-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMember2023-12-310001034842rigl:FirstCommercialSaleMemberrigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842rigl:FirstAnniversaryOfClosingDateMemberrigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842rigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842rigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-09-300001034842rigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300001034842us-gaap:EmployeeStockOptionMember2024-07-012024-09-300001034842us-gaap:EmployeeStockMember2024-07-012024-09-300001034842us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001034842us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001034842us-gaap:EmployeeStockMember2024-01-012024-09-300001034842us-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:SellingGeneralAndAdministrativeExpensesMember2024-07-012024-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300001034842us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-09-300001034842us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-09-300001034842us-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:AdditionalPaidInCapitalMember2024-07-012024-09-300001034842us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-3000010348422024-04-012024-06-300001034842us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-3100010348422024-01-012024-03-310001034842us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001034842us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-3000010348422023-04-012023-06-300001034842us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100010348422023-01-012023-03-310001034842rigl:RezlidhiaMember2024-01-012024-09-300001034842rigl:GavretoMember2024-01-012024-09-300001034842us-gaap:USTreasuryBillSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-09-300001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-09-300001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-09-300001034842us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2024-09-300001034842us-gaap:USTreasuryBillSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberus-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842rigl:CorporateBondSecuritiesAndCommercialPaperMemberrigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842rigl:AccumulatedNetInvestmentLossIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001034842rigl:OcadusertibMember2024-07-012024-09-300001034842rigl:OcadusertibMember2023-07-012023-09-300001034842rigl:OcadusertibMember2023-01-012023-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2022-12-310001034842us-gaap:EmployeeStockMember2024-07-012024-07-010001034842us-gaap:EmployeeStockMember2024-01-012024-09-300001034842rigl:AccountsReceivableAndPrepaidAndOtherCurrentAssetsMember2024-01-012024-09-300001034842rigl:AccountsReceivableAndPrepaidAndOtherCurrentAssetsMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberrigl:FostamatinibMembersrt:MaximumMember2019-01-012019-01-310001034842rigl:OcadusertibMemberrigl:AmendedLillyAgreementMember2024-01-012024-09-300001034842rigl:GavretoMembersrt:MinimumMemberrigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842rigl:GavretoMembersrt:MaximumMemberrigl:BlueprintMedicinesCorporationMember2024-02-222024-02-220001034842rigl:SpecifiedCommercialMilestonesMemberrigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-02-220001034842rigl:RegulatoryMilestonesMemberrigl:GavretoMemberrigl:BlueprintMedicinesCorporationMember2024-02-220001034842rigl:RezlidhiaMemberrigl:StrategicCollaborationAgreementWithMdaccMember2023-12-012024-09-3000010348422024-07-012024-09-3000010348422023-07-012023-09-3000010348422023-01-012023-09-300001034842rigl:OcadusertibMember2023-12-310001034842rigl:OcadusertibMember2024-09-300001034842rigl:RezlidhiaMemberrigl:StrategicCollaborationAgreementWithConnectMember2024-01-310001034842rigl:RezlidhiaMemberrigl:StrategicCollaborationAgreementWithMdaccMember2023-12-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:RezlidhiaMember2024-01-012024-09-300001034842rigl:OcadusertibMember2024-01-012024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:RezlidhiaMember2024-09-032024-09-030001034842rigl:KnightTherapeuticsInternationalSaMemberrigl:SpecifiedCommercialMilestonesMembersrt:MaximumMemberrigl:CommercialAndLicenseAgreementMember2024-01-012024-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByNonCentralNervousSystemDiseaseProductsMemberrigl:MilestonePaymentsOnProductByProductBasisMember2024-01-012024-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByCentralNervousSystemDiseaseProductsMemberrigl:MilestonePaymentsOnProductByProductBasisMember2024-01-012024-09-300001034842rigl:SpecifiedRegulatoryEventsMember2024-01-012024-09-300001034842rigl:SpecifiedProductLaunchEventsMember2024-01-012024-09-300001034842rigl:SpecifiedDevelopmentEventsMember2024-01-012024-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByNonCentralNervousSystemDiseaseProductsMember2024-01-012024-09-300001034842rigl:DevelopmentAndRegulatoryMilestonesByCentralNervousSystemDiseaseProductsMember2024-01-012024-09-300001034842rigl:GrifolsS.a.Memberrigl:EuropeanMedicinesAgencyApprovalOfFostamatinibForTreatmentOfChronicImmuneThrombocytopenicPurpuraMemberrigl:FostamatinibMember2020-02-012020-02-290001034842rigl:GrifolsS.a.Memberrigl:SpecifiedCommercialMilestonesMember2019-01-012019-01-310001034842rigl:FormaTherapeuticsHoldingsIncMember2022-07-012022-07-270001034842rigl:KnightTherapeuticsInternationalSaMemberrigl:CommercialAndLicenseAgreementMember2024-01-012024-09-3000010348422021-04-012021-04-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberrigl:CommercialAndLicenseAgreementMember2019-10-012019-10-310001034842rigl:GrifolsS.a.Member2019-01-012019-01-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Member2018-10-012018-10-310001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2024-07-012024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2024-07-012024-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2024-07-012024-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2024-07-012024-09-300001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMember2024-07-012024-09-300001034842us-gaap:GovernmentContractMember2024-07-012024-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2024-01-012024-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2024-01-012024-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2024-01-012024-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2024-01-012024-09-300001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMember2024-01-012024-09-300001034842us-gaap:GovernmentContractMember2024-01-012024-09-300001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMember2023-08-012024-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2023-07-012023-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2023-07-012023-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2023-07-012023-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2023-07-012023-09-300001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMember2023-07-012023-09-300001034842us-gaap:GovernmentContractMember2023-07-012023-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMember2023-01-012023-09-300001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:FostamatinibMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberus-gaap:RoyaltyMember2023-01-012023-09-300001034842rigl:GrifolsS.a.Memberrigl:OneTimeDeliveryOfDrugSupplyForCommercializationMember2023-01-012023-09-300001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMember2023-01-012023-09-300001034842us-gaap:GovernmentContractMember2023-01-012023-09-300001034842rigl:LicensedRightsMemberrigl:CentralNervousSystemPenetrantIntellectualPropertyMember2021-01-012021-12-310001034842rigl:NonCentralNervousSystemPenetrantIntellectualPropertyMember2021-01-012021-03-310001034842rigl:KisseiPharmaceuticalCo.Ltd.Memberrigl:RezlidhiaMember2024-09-012024-09-010001034842rigl:BiomedicalAdvancedResearchAndDevelopmentAuthorityMemberrigl:FostamatinibMembersrt:MaximumMember2023-08-012023-08-310001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:SpecifiedCommercialMilestonesMember2022-07-012022-07-270001034842rigl:FormaTherapeuticsHoldingsIncMemberrigl:DevelopmentAndRegulatoryMilestonesMember2022-07-012022-07-270001034842rigl:RezlidhiaMemberrigl:StrategicCollaborationAgreementWithMdaccMember2024-01-012024-09-300001034842rigl:RezlidhiaMemberrigl:StrategicCollaborationAgreementWithConnectMember2024-01-012024-09-3000010348422023-01-012023-12-310001034842rigl:BlueprintMedicinesCorporationMember2024-09-300001034842rigl:MedisonPharmaLtd.Memberrigl:FostamatinibMemberrigl:CommercialAndLicenseAgreementMember2024-01-012024-09-3000010348422024-09-3000010348422023-12-3100010348422024-11-0400010348422024-01-012024-09-30xbrli:sharesiso4217:USDxbrli:purerigl:periodrigl:itemiso4217: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, 2024

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 4, 2024, there were 17,615,040 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, 2024

INDEX

Page

PART I

FINANCIAL INFORMATION

3

Item 1.

Financial Statements

3

Condensed Balance Sheets — September 30, 2024 (Unaudited) and December 31, 2023

3

Condensed Statements of Operations (Unaudited) — three and nine months ended September 30, 2024 and 2023

4

Condensed Statements of Comprehensive Income (Loss) (Unaudited) — three and nine months ended September 30, 2024 and 2023

5

Condensed Statements of Stockholders’ Deficit (Unaudited) — three and nine months ended September 30, 2024 and 2023

6

Condensed Statements of Cash Flows (Unaudited) — nine months ended September 30, 2024 and 2023

7

Notes to Condensed Financial Statements (Unaudited)

8

Item 2.

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

25

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

48

Item 4.

Controls and Procedures

48

PART II

OTHER INFORMATION

48

Item 1.

Legal Proceedings

48

Item 1A.

Risk Factors

49

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

99

Item 3.

Defaults Upon Senior Securities

99

Item 4.

Mine Safety Disclosures

99

Item 5.

Other Information

99

Item 6.

Exhibits

100

Signatures

101

2

Table of Contents 

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

RIGEL PHARMACEUTICALS, INC.

CONDENSED BALANCE SHEETS

(In thousands)

As of

September 30, 2024

    

December 31, 2023 (1)

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

51,692

$

32,786

Short-term investments

 

9,422

 

24,147

Accounts receivable, net

 

30,575

 

30,550

Inventories

4,784

 

5,522

Prepaid and other current assets

 

9,994

 

6,261

Total current assets

 

106,467

 

99,266

Property and equipment, net

 

99

 

165

Intangible assets, net

27,687

13,878

Operating lease right-of-use assets

405

861

Other assets

 

4,761

 

3,055

Total assets

$

139,419

$

117,225

Liabilities and stockholders’ deficit

Current liabilities:

Accounts payable

$

3,815

$

7,142

Accrued compensation

 

7,924

 

8,676

Accrued research and development

 

3,593

 

3,513

Acquisition-related liabilities

5,000

Revenue reserves and refund liability

22,192

15,684

Loans payable, net, current portion

7,229

Other accrued liabilities

 

9,967

 

5,334

Deferred revenue

1,355

1,355

Lease liabilities, current portion

466

692

Other long-term liabilities, current portion

3,642

Total current liabilities

 

54,312

 

53,267

Long-term portion of lease liabilities

 

 

285

Long-term portion of loans payable, net

59,762

52,373

Other long-term liabilities

 

39,981

 

39,944

Total liabilities

154,055

145,869

Commitments

Stockholders’ deficit:

Common stock (2)

 

17

 

17

Additional paid-in capital (2)

 

1,389,742

 

1,378,881

Accumulated other comprehensive income

 

11

 

8

Accumulated deficit

 

(1,404,406)

 

(1,407,550)

Total stockholders’ deficit

 

(14,636)

 

(28,644)

Total liabilities and stockholders’ deficit

$

139,419

$

117,225

(1)The balance sheet as of December 31, 2023 has been derived from the audited financial statements included in Rigel’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC) on March 5, 2024.
(2)Common stock and additional paid-in capital have been restated to reflect the 1-for-10 reverse stock split effected on June 27, 2024 on a retroactive basis for the periods presented.

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, 

    

2024

    

2023

    

2024

    

2023

Revenues:

Product sales, net

$

38,927

$

27,129

$

98,380

74,755

Contract revenues from collaborations

16,380

1,005

23,302

5,335

Government contracts

1,000

Total revenues

55,307

28,134

121,682

81,090

Costs and expenses:

Cost of product sales

8,026

1,268

12,858

3,320

Research and development

 

6,182

 

6,475

17,748

21,336

Selling, general and administrative

 

27,043

 

24,856

83,539

78,891

Total costs and expenses

 

41,251

 

32,599

 

114,145

 

103,547

Income (loss) from operations

 

14,056

 

(4,465)

 

7,537

 

(22,457)

Interest income

 

425

 

672

 

1,570

1,594

Interest expense

(2,060)

(1,899)

(5,963)

(4,965)

Net income (loss)

$

12,421

$

(5,692)

$

3,144

$

(25,828)

Net income (loss) per share(1)

Basic

$

0.71

$

(0.33)

$

0.18

$

(1.49)

Diluted

$

0.70

$

(0.33)

$

0.18

$

(1.49)

Weighted average shares used in computing net income (loss) per share (1)

Basic

17,600

17,436

17,556

17,389

Diluted

17,648

17,436

17,599

17,389

(1)Share and per share amounts have been restated to reflect the 1-for-10 reverse stock split effected on June 27, 2024 on a retroactive basis for all periods presented.

See Accompanying Notes to Condensed Financial Statements

4

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(unaudited)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2024

    

2023

    

2024

    

2023

Net income (loss)

$

12,421

$

(5,692)

$

3,144

(25,828)

Other comprehensive income:

Net unrealized gain on short-term investments

 

20

 

10

 

3

138

Comprehensive income (loss)

$

12,441

$

(5,682)

$

3,147

$

(25,690)

See Accompanying Notes to Condensed Financial Statements

5

Table of Contents 

RIGEL PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In thousands, except share amounts)

(unaudited)

Additional

Accumulated Other

Total

Common Stock (1)

Paid-in

Comprehensive

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital (1)

    

(Loss) Income

    

Deficit

    

Deficit

Balance as of January 1, 2024

 

17,482,513

$

17

$

1,378,881

$

8

$

(1,407,550)

$

(28,644)

Net loss

 

(8,247)

 

(8,247)

Net change in unrealized loss on short-term investments

 

(13)

 

(13)

Issuance of common stock upon exercise of options

 

9,066

89

 

89

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

48,658

Stock-based compensation expense

 

5,144

 

5,144

Balance as of March 31, 2024

 

17,540,237

17

1,384,114

(5)

(1,415,797)

(31,671)

Net loss

 

(1,030)

(1,030)

Net change in unrealized loss on short-term investments

 

(4)

(4)

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

 

36,130

252

252

Issuance of common stock upon vesting of RSUs

17,750

Stock-based compensation expense

 

2,539

2,539

Balance as of June 30, 2024

17,594,117

$

17

$

1,386,905

$

(9)

$

(1,416,827)

$

(29,914)

Net income

 

12,421

12,421

Net change in unrealized gain on short-term investments

 

20

20

Issuance of common stock upon exercise of options

 

16,363

158

158

Issuance of common stock upon vesting of RSUs

2,500

Stock-based compensation expense

 

2,679

2,679

Balance as of September 30, 2024

 

17,612,980

$

17

$

1,389,742

$

11

$

(1,404,406)

$

(14,636)

Additional

Accumulated Other

Total

Common Stock (1)

Paid-in

Comprehensive

Accumulated

Stockholders’

    

Shares

    

Amount

    

Capital (1)

    

(Loss)

    

Deficit

    

Deficit

Balance as of January 1, 2023

 

17,339,816

$

17

$

1,368,979

$

(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

 

95

1

 

1

Issuance of common stock upon vesting of RSUs

26,625

Stock-based compensation expense

 

2,768

 

2,768

Balance as of March 31, 2023

 

17,366,536

17

1,371,748

(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

 

52,379

554

554

Issuance of common stock upon vesting of RSUs

16,875

Stock-based compensation expense

 

2,186

2,186

Balance as of June 30, 2023

17,435,790

$

17

$

1,374,488

$

(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

 

883

8

8

Stock-based compensation expense

 

1,955

1,955

Balance as of September 30, 2023

 

17,436,673

$

17

$

1,376,451

$

(15)

$

(1,408,287)

$

(31,834)

(1)All share amounts in this column, including appropriate reclassifications between common stock and additional paid-in capital, have been restated to reflect the 1-for-10 reverse stock split effected on June 27, 2024 on a retroactive basis for all periods presented.

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, 

2024

    

2023

Operating activities

Net income (loss)

$

3,144

$

(25,828)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Stock-based compensation expense

 

10,306

6,873

(Gain) loss on sale and disposal of fixed assets

(23)

376

Depreciation and amortization

 

1,624

945

Net amortization of discount on short-term investments and term loans

(433)

(219)

Changes in assets and liabilities:

Accounts receivable, net

 

(25)

16,774

Inventories

(1,161)

(1,359)

Prepaid and other current and non-current assets

 

(3,484)

5,329

Right-of-use assets

 

456

922

Accounts payable

 

(3,327)

491

Accrued compensation

 

(752)

(773)

Accrued research and development

 

80

(1,954)

Revenue reserves and refund liability

6,508

2,398

Other accrued liabilities

 

4,566

(1,455)

Lease liability

(511)

(966)

Deferred revenue

(14)

Other current and long-term liabilities

 

 

(1,043)

Net cash provided by operating activities

 

16,968

 

497

Investing activities

Maturities of short-term investments

 

32,950

35,650

Purchases of short-term investments

 

(17,562)

(18,222)

Capital expenditures

(10)

Payments for acquisition of intangible assets

 

(360)

(15,000)

Proceeds from sale of property and equipment

26

149

Net cash provided by investing activities

 

15,044

 

2,577

Financing activities

Net proceeds from term loan financing

19,950

Net proceeds from issuances of common stock upon exercise of options

 

499

563

Closing purchase price payment related to asset acquisition

(10,000)

Cost share payments to a collaboration partner

(3,605)

(2,632)

Net cash (used in) provided by financing activities

 

(13,106)

 

17,881

Net increase in cash and cash equivalents

 

18,906

 

20,955

Cash and cash equivalents at beginning of period

 

32,786

24,459

Cash and cash equivalents at end of period

$

51,692

$

45,414

Supplemental disclosure of cash flow information

Interest paid

$

5,292

$

4,167

Acquisition-related liabilities

$

5,000

$

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 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.

TAVALISSE® (fostamatinib disodium hexahydrate) is our first product approved by the US Food and Drug Administration (FDA). TAVALISSE is 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.

REZLIDHIA® (olutasidenib) is our second FDA-approved product. REZLIDHIA capsules are indicated 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 in-licensed REZLIDHIA from Forma Therapeutics, Inc., now Novo Nordisk (Forma), with exclusive, worldwide rights for its development, manufacturing and commercialization.

GAVRETO® (pralsetinib) is our third FDA-approved product which we began commercializing on June 27, 2024. GAVRETO is a once daily, small molecule, oral, kinase inhibitor of wild-type rearranged during transfection (RET) and oncogenic RET fusions. GAVRETO is approved by the FDA for the treatment of adult patients with metastatic RET fusion-positive non-small cell lung cancer (NSCLC) as detected by an FDA-approved test. GAVRETO is also approved under accelerated approval based on overall response rate and duration response rate, for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer who require systemic therapy and who are radioactive iodine-refractory (if radioactive iodine is appropriate). We acquired the rights to research, develop, manufacture and commercialize GAVRETO in the US from Blueprint Medicines Corporation (Blueprint) pursuant to an Asset Purchase Agreement entered in February 2024.

We continue to advance the development of R289, our dual interleukin receptor-associated kinases 1 and 4 (IRAK 1/4) inhibitor program, in an open-label, Phase 1b study to determine the tolerability and preliminary efficacy of the drug in patients with lower-risk myelodysplastic syndrome (MDS) who are relapsed, refractory or resistant to prior therapies.

We have strategic development collaborations with the University of Texas MD Anderson Cancer Center (MDACC) to expand our evaluation of olutasidenib in AML and other hematologic cancers with IDH1 mutations, and with Collaborative Network for Neuro-Oncology Clinical Trials (CONNECT) to conduct a Phase 2 clinical trial to evaluate olutasidenib in combination with temozolomide in patients with high-grade glioma (HGG) harboring an IDH1 mutation.

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).

8

Table of Contents 

Reverse Stock Split

We filed with the Secretary of State of the State of Delaware a certificate of amendment to our Amended and Restated Certificate of Incorporation, to effect a 1-for-10 reverse stock split, effective June 27, 2024. As a result of the reverse stock split, every ten issued and outstanding shares of our common stock were automatically combined into one issued and outstanding share of common stock. Accordingly, an amount equal to the par value of the decreased shares resulting from the reverse stock split was reclassified from common stock to additional paid-in capital on the condensed balance sheet and statement of changes in stockholders’ deficit. No fractional shares were issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares of common stock were entitled to receive the cash value equal to the fraction to which the stockholder would otherwise be entitled, multiplied by the closing price of the common stock as reported by Nasdaq on the last trading day prior to the effective date of the split. As a result of the reverse stock split, proportionate adjustments were made to the number of shares underlying (and as applicable, the exercise or conversion prices of) our outstanding equity awards and to the number of shares of common stock issuable under our equity incentive plans. The reverse stock split did not change the par value of our common stock, which remains $0.001, or the authorized number of shares of our common stock. All share amounts and per share amounts disclosed in this Quarterly Report on Form 10-Q have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented.

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, 2023 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, 2023.

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, 2023. There have been no material changes to these accounting policies except for the accounting consideration related to the Asset Purchase Agreement with Blueprint as discussed below in “Note 5 – In-licensing and Acquisition.”

Liquidity

As of September 30, 2024, we had approximately $61.1 million in cash, cash equivalents and short-term investments. We finance our operations primarily through sales of our products, and contract payments under our collaboration agreements, as well as through equity securities and debt financing.

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.

9

Table of Contents 

Recently Issued Accounting Standards

In November 2023, FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This update expands public entities’ segment disclosures, among others, requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss; an amount and description of its composition for other segment items; and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under this update are also required for public entities with a single reportable segment. This update is effective for our Annual Report on Form 10-K for the fiscal year ending December 31, 2024, and interim periods thereafter. Early adoption is permitted. The update should be applied retrospectively to all periods presented in the financial statements. We are currently evaluating the impact of adopting this update on our financial statements and disclosures.

In December 2023, FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which enhance the annual disclosure requirements regarding the tax rate reconciliation and incomes taxes paid information. This update is effective for our fiscal year ending December 31, 2025, and maybe adopted on a prospective or retrospective basis. Early adoption is permitted. We are currently assessing the impact of adopting this guidance but do not expect it to have a significant impact to our financial statements and disclosures.

Other recently issued accounting guidance not discussed in this Quarterly Report on Form 10-Q are either not applicable or did not have, or are not expected to have, a material impact on us.

2.

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (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 following table sets forth the computation of basic and diluted earnings per share (in thousands except per share amounts):

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2024

    

2023

    

2024

    

2023

EPS Numerator:

Net income (loss)

$

12,421

$

(5,692)

$

3,144

$

(25,828)

EPS Denominator—Basic:

Weighted-average common shares outstanding

 

17,600

 

17,436

 

17,556

 

17,389

EPS Denominator—Diluted:

Weighted-average common shares outstanding

 

17,600

17,436

17,556

17,389

Dilutive effect of stock options, RSUs and shares under Purchase Plan

 

48

43

Weighted-average shares outstanding and common stock equivalents

 

17,648

 

17,436

 

17,599

 

17,389

Net income (loss) per share

Basic

$

0.71

$

(0.33)

$

0.18

$

(1.49)

Diluted

$

0.70

$

(0.33)

$

0.18

$

(1.49)

10

Table of Contents 

The potential shares of common stock that were excluded from the computation of diluted net income (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, 

2024

    

2023

2024

    

2023

Stock options

3,667

3,428

3,668

3,428

RSUs

107

193

110

193

Shares under Purchase Plan

22

30

22

30

Total

3,796

3,651

3,800

3,651

3.

Revenues

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

Three Months Ended September 30, 

Nine Months Ended September 30, 

2024

    

2023

2024

    

2023

Product sales:

Gross product sales

$

56,322

$

38,585

$

143,728

$

105,239

Discounts and allowances

(17,395)

(11,456)

(45,348)

(30,484)

Total product sales, net

38,927

27,129

98,380

74,755

Revenues from collaborations:

License revenue

10,000

10,000

Milestone revenue

75

75

Delivery of drug supplies, royalty and others

6,380

930

13,302

5,260

Total revenues from collaborations

16,380

1,005

23,302

5,335

Government contracts

1,000

Total revenues

$

55,307

$

28,134

$

121,682

$

81,090

Revenue from product sales are related to sales of our commercial products to our customers. For detailed discussions of our revenues from collaborations and government contracts, see “Note 4 – Sponsored Research, License Agreements and Government Contracts.”

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, 2024 and 2023, $44.6 million and $29.7 million, respectively, was accounted for as additions to revenue reserves and refund liability, and $0.7 million and $0.8 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