Rigel Pharmaceuticals (NASDAQ:RIGL) Posts Earnings Results, Beats Estimates By $0.79 EPS

Key Points

• Rigel beat quarterly earnings expectations, reporting $0.88 in EPS versus the $0.09 consensus estimate. Commercial revenue rose 14% year over year to $67 million, driven by record TAVALISSE sales and REZLIDHIA growth.
• VEPPANU is expected to launch in mid-August, earlier than initially scheduled, and could become Rigel’s largest future revenue driver. Clinical data showed improved progression-free survival versus fulvestrant in breast cancer patients.
• Cash declined to $95.3 million from $155 million at year-end, while VEPPANU involves substantial upfront, milestone, royalty and development obligations. Analysts’ average rating is “Hold,” with a consensus price target of $54.50.

Rigel Pharmaceuticals (NASDAQ:RIGL - Get Free Report) posted its earnings results on Tuesday. The biotechnology company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.09 by $0.79, Zacks reports. Rigel Pharmaceuticals had a net margin of 121.50% and a return on equity of 47.99%.

Here are the key takeaways from Rigel Pharmaceuticals' conference call:

• Commercial revenue grew 14% year over year to $67 million in Q2, led by record TAVALISSE sales of $47.4 million and REZLIDHIA growth of 27% to $8.9 million.
• Rigel expects to make VEPPANU available in mid-August, ahead of its initial schedule, and views the FDA-approved breast cancer therapy as a potential market-leading product and its largest future revenue driver. However, the company is not yet providing VEPPANU sales guidance.
• VEPPANU’s VERITAC-2 results showed median progression-free survival of 5.0 months versus 2.1 months for fulvestrant, with a hazard ratio of 0.57, while discontinuations and dose reductions remained low at 3% and 2%, respectively.
• R289’s dose-expansion study in lower-risk MDS is enrolling, with top-line data expected by year-end; earlier data showed 33% of evaluable patients achieved at least eight weeks of red-blood-cell transfusion independence, but the dataset remains small and preliminary.
• Rigel ended the quarter with $95.3 million in cash and short-term investments, down from $155 million at year-end, while VEPPANU carries a $70 million upfront payment, up to $320 million in potential payments, tiered royalties in the mid-teens to mid-20s, and up to $40 million of development funding obligations.

Rigel Pharmaceuticals Price Performance

RIGL stock traded up $1.27 during midday trading on Tuesday, reaching $38.70. The company had a trading volume of 333,725 shares, compared to its average volume of 325,475. The firm has a 50-day moving average price of $36.08 and a 200-day moving average price of $32.95. The company has a market capitalization of $715.95 million, a P/E ratio of 5.92 and a beta of 1.16. Rigel Pharmaceuticals has a 1 year low of $21.87 and a 1 year high of $52.24. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.62 and a quick ratio of 2.48.

Insiders Place Their Bets

In related news, Director Kamil Ali-Jackson sold 2,500 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $35.00, for a total value of $87,500.00. Following the completion of the sale, the director owned 10,125 shares in the company, valued at $354,375. The trade was a 19.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 10.47% of the stock is owned by insiders.

Hedge Funds Weigh In On Rigel Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in RIGL. Northwestern Mutual Wealth Management Co. boosted its stake in Rigel Pharmaceuticals by 400.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,275 shares of the biotechnology company's stock worth $55,000 after acquiring an additional 1,020 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in shares of Rigel Pharmaceuticals during the third quarter valued at approximately $62,000. Wexford Capital LP purchased a new stake in shares of Rigel Pharmaceuticals in the 3rd quarter worth approximately $66,000. Legal & General Group Plc increased its position in Rigel Pharmaceuticals by 130.7% during the 2nd quarter. Legal & General Group Plc now owns 4,310 shares of the biotechnology company's stock valued at $81,000 after buying an additional 2,442 shares in the last quarter. Finally, Truvestments Capital LLC increased its position in Rigel Pharmaceuticals by 120.3% during the 4th quarter. Truvestments Capital LLC now owns 2,207 shares of the biotechnology company's stock valued at $95,000 after buying an additional 1,205 shares in the last quarter. Institutional investors own 66.23% of the company's stock.

Wall Street Analysts Forecast Growth

RIGL has been the topic of a number of recent analyst reports. HC Wainwright reiterated a "buy" rating and set a $57.00 price target on shares of Rigel Pharmaceuticals in a report on Tuesday, June 2nd. Weiss Ratings restated a "hold (c+)" rating on shares of Rigel Pharmaceuticals in a research note on Friday, July 17th. Citigroup reaffirmed a "buy" rating and set a $81.00 target price (up from $69.00) on shares of Rigel Pharmaceuticals in a research report on Wednesday, May 13th. Finally, Zacks Research cut Rigel Pharmaceuticals from a "hold" rating to a "strong sell" rating in a research note on Thursday, May 7th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Rigel Pharmaceuticals presently has an average rating of "Hold" and a consensus target price of $54.50.

Rigel Pharmaceuticals Company Profile

Rigel Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company headquartered in South San Francisco, California. Founded in 2003, Rigel focuses on the discovery, development and commercialization of novel small molecule therapeutics targeting immune, hematologic and oncologic diseases. Leveraging a proprietary chemistry platform and expertise in signal transduction pathways, the company aims to address significant unmet medical needs in both rare and common disorders.

Rigel's lead product, fostamatinib (commercially known as Tavalisse®), is an oral spleen tyrosine kinase (SYK) inhibitor approved in the United States for the treatment of adult patients with chronic immune thrombocytopenia (ITP).

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