Rigel Pharmaceuticals reports net loss of $0.48 per share for fourth-quarter 2009

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the fourth quarter and year ended December 31, 2009.

For the fourth quarter of 2009, Rigel reported a net loss of $25.1 million, or $0.48 per share, compared to a net loss of $33.4 million, or $0.91 per share, in the fourth quarter of 2008. Weighted average shares outstanding for the fourth quarters of 2009 and 2008 were 51.8 million and 36.6 million, respectively.

Contract revenue in the fourth quarter of 2009 was comprised of a $750,000 milestone payment from Daiichi Sankyo for the designation of the first lead compound related to the ligase oncology collaboration. There was no contract revenue reported in the fourth quarter of 2008.

Rigel reported total operating expenses of $25.9 million in the fourth quarter of 2009, compared to $34.0 million in the fourth quarter of 2008. The decrease in operating expenses was primarily due to the completion of two Phase 2b clinical trials (TASKi2 and TASKi3) in July 2009 and a decrease in stock-based compensation expense.  Stock-based compensation expense decreased from $6.0 million in the fourth quarter of 2008 to $3.8 million in the fourth quarter of 2009, primarily due to the lower valuation of options granted in the first quarter of 2009.    

For the twelve months ended December 31, 2009, Rigel reported a net loss of $111.5 million, or $2.73 per share, compared to a net loss of $132.3 million, or $3.67 per share, for the same period of 2008.

As of December 31, 2009, Rigel had cash, cash equivalents and available for sale securities of $133.3 million, compared to $134.5 million as of December 31, 2008.

In February 2010 Rigel announced the signing of a worldwide license agreement with AstraZeneca AB for certain of its oral Syk inhibitors, including the Company's lead compound R788.  Upon effectiveness of the agreement, Rigel will receive an upfront payment of $100 million and expects to receive an additional $25 million in milestone payments in 2010.  AstraZeneca is responsible for all development, regulatory filings, manufacturing and global commercialization activities for products in all of the licensed indications. Rigel anticipates that AstraZeneca will begin a global Phase 3 clinical trial program in rheumatoid arthritis in the second half of 2010.

"Our recently announced agreement with AstraZeneca allows R788 to move quickly forward without requiring us to fund the very large Phase 3 clinical trial program," said James M. Gower, chairman and chief executive officer of Rigel. "It also provides us with the resources we anticipate needing to move other of our internally discovered research and development programs into the clinic in 2010 and 2011," he added.

Other recent news:

Last week, Merck Serono advised Rigel of its plans to return the R763 aurora kinase program for certain solid tumors and leukemias to Rigel. The program, which Merck Serono licensed in 2005, has progressed through Phase 1 safety trials. Rigel plans to evaluate the program's preclinical and clinical data and make a decision on the program's disposition.

Rigel will be hosting an investor day on March 25, 2010 in Boston, Massachusetts to present an updated clinical and research pipeline.  Details of the event will be announced shortly.

SOURCE Rigel Pharmaceuticals, Inc.