Rigel reports net loss of $25.6 million in first quarter 2013

Rigel Pharmaceuticals, Inc.May 7 2013

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the first quarter ended March 31, 2013.

For the first quarter of 2013, Rigel reported a net loss of $25.6 million, or $0.29 per share, compared to a net loss of $23.2 million, or $0.32 per share, in the first quarter of 2012. Weighted average shares outstanding for the first quarters of 2013 and 2012 were 87.1 million and 71.4 million, respectively.

There was no contract revenue from collaboration in the first quarter of 2013.  Contract revenue from collaborations in the first quarter of 2012 was comprised of a $750,000 payment from Daiichi Sankyo related to an oncology compound in pre-clinical testing at Daiichi Sankyo.   

Rigel reported total operating expenses of $25.7 million in the first quarter of 2013, compared to $24.1 million in the first quarter of 2012. The increase in operating expenses was primarily due to the research and development expense related to the ongoing studies of R348, Rigel's topical ophthalmic JAK/SYK inhibitor program for chronic dry eye, and R343, Rigel's inhaled SYK inhibitor program for asthma, partially offset by a decrease in stock-based compensation expense. Stock-based compensation expense decreased from approximately $3.1 million in the first quarter of 2012 to approximately $1.8 million in the first quarter of 2013 primarily because the majority of options granted in the first quarter of 2013 have a longer vesting period and a lower valuation as compared to options granted in the same period of 2012.

As of March 31, 2013, Rigel had cash, cash equivalents and available for sale securities of $272.5 million, compared to $298.2 million as of December 31, 2012.   Rigel expects to end 2013 with cash and investments in excess of $200.0 million, which is expected to be sufficient to fund operations into 2015. 

"In the second quarter of 2013, we expect our partner AstraZeneca to report topline results from the two remaining Phase 3 studies of fostamatinib in rheumatoid arthritis, OSKIRA2 and OSKIRA3," said James M. Gower , chairman and chief executive officer of Rigel Pharmaceuticals. "Results from two other Phase 2 studies with R343 in allergic asthma and R333 in discoid lupus will follow later this year."