Rigel Announces Second Quarter 2008 Financial Results

SOUTH SAN FRANCISCO, Calif., Aug. 5 /PRNewswire-FirstCall/ -- Rigel
Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the
second quarter and six months ended June 30, 2008.
For the second quarter of 2008, Rigel reported a net loss of $34.0
million, or $0.93 per share, compared to a net loss of $19.2 million, or $0.68
per share, in the second quarter of 2007. Weighted average shares outstanding
for the second quarters of 2008 and 2007 were 36.5 million and 28.4 million,
respectively.
Rigel reported no revenue from collaborations in the second quarter of
2008, compared to $2.0 million reported in the second quarter of 2007.
Revenue recorded in the second quarter of 2007 related to Rigel's research
collaboration agreements with Merck and Pfizer.
Rigel reported operating expenses of $35.3 million in the second quarter
of 2008, compared to $22.6 million in the second quarter of 2007. The
increase in operating expenses was primarily due to increases in clinical
development expenses and to a lesser extent stock-based compensation expense.
The increase in clinical expenses was mainly due to an increase in costs
associated with the two recently initiated Phase 2b clinical trials of R788 in
rheumatoid arthritis (TASKi2 and TASKi3). Stock-based compensation expense
increased from $3.7 million in the second quarter of 2007 to $5.9 million in
the second quarter of 2008 due mainly to higher valuation of options granted
in the first quarter of 2008.
For the six months ended June 30, 2008, Rigel reported a net loss of $61.3
million, or $1.73 per share, compared to a net loss in the first six months of
2007 of $36.3 million, or $1.36 per share. Rigel recorded no revenue from
collaborations for the first six months of 2008, compared to $4.6 million for
the same period in 2007.
As of June 30, 2008, Rigel had cash, cash equivalents and available for
sale securities of $185.0 million, compared to $209.7 million on March 31,
2008 and $108.3 million on December 31, 2007. In February 2008, Rigel
completed a public offering raising aggregate net proceeds of approximately
$127.5 million.
"During the first half of 2008, the advancement of Rigel's clinical
development programs took center stage," said James M. Gower, chairman and
chief executive officer of Rigel. "Most significantly, we initiated two
important Phase 2b clinical trials of R788 in patients with rheumatoid
arthritis and reported favorable results from a Phase 2 clinical trial of R788
in B-cell lymphoma patients," he added.
Second Quarter Highlights
Rigel announced the following highlights in the second quarter of 2008:
-- Initiation of two Phase 2b clinical trials of R788 in patients with
rheumatoid arthritis, also known as TASKi2 and TASKi3.
-- Reported preliminary results from Phase 2 clinical trial with R788 in
patients with non-Hodgkins lymphoma, which showed R788 to be potentially
beneficial as a treatment for certain types of B-cell lymphomas (diffuse large
B-cell and SLL/CLL).
-- Publication of results from a preclinical study showing R788 to be
effective in treating Lupus-prone mice (Arthritis and Rheumatism, May 2008).
-- Presentation of results from preclinical study, showing the potential
of R788 in delaying the onset of Type 1 diabetes and prolonging the survival
of diabetic mice (American Association of Immunologists (AAI) meeting, April
2008).
About Rigel
Rigel is a clinical-stage drug development company that discovers and
develops novel, small-molecule drugs for the treatment of
inflammatory/autoimmune diseases and cancer, as well as viral and metabolic
diseases. Our pioneering research focuses on intracellular signaling pathways
and related targets that are critical to disease mechanisms. Rigel's
productivity has resulted in strategic collaborations with large
pharmaceutical partners to develop and market our product candidates. Rigel
has product development programs in inflammatory/autoimmune diseases such as
rheumatoid arthritis thrombocytopenia and asthma, as well as in cancer.
This press release contains "forward-looking" statements, including statements
related to Rigel's plans to pursue clinical development of product candidates,
and the efficacy thereof. Any statements contained in this press release that
are not statements of historical fact may be deemed to be forward-looking
statements. Words such as "plans," "potential," "intends," "indicates,"
"promising," "expects," "anticipates" and similar expressions are intended to
identify these forward-looking statements. There are a number of important
factors that could cause Rigel's results to differ materially from those
indicated by these forward-looking statements, including risks associated with
the timing and success of clinical trials, as well as other risks detailed
from time to time in Rigel's SEC reports, including its Form 10-Q for the
quarter ended March 31, 2008. Rigel does not undertake any obligation to
update forward-looking statements.
Contact: Ryan D. Maynard
Phone: 650.624.1284
Email: invrel@rigel.com

Media Contact: Susan C. Rogers, Alchemy Consulting, Inc.
Phone: 650.430.3777
Email: susan@alchemyemail.com

STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(unaudited) (unaudited)
Revenues:
Contract revenues $- $1,956 $- $4,600

Operating expenses:
Research and development
(see Note A) 28,416 17,189 50,036 33,032
General and administrative
(see Note A) 6,861 5,373 13,986 10,412
Total operating expenses 35,277 22,562 64,022 43,444
Loss from operations (35,277) (20,606) (64,022) (38,844)
Loss on sale/disposal of property
and equipment - -
Interest income, net 1,248 1,361 2,731 2,518
Net loss $(34,029) $(19,245) $(61,291) $(36,326)
Net loss per share, basic and
diluted $(0.93) $(0.68) $(1.73) $(1.36)
Weighted average shares used in
computing net loss per share,
basic and diluted 36,505 28,355 35,461 26,779

Note A

Stock-based compensation expense
included in:
Research and development $3,102 $1,718 $6,194 2918
General and administrative 2,817 1,987 $5,571 3,409
$5,919 $3,705 $11,765 $6,327

SUMMARY BALANCE SHEET DATA
(in thousands)

June 30, December 31,
2008 2007
(unaudited) (1)
Cash, cash equivalents and
available for sale securities $185,001 $108,296
Total assets 194,679 115,789
Stockholder's equity 162,206 82,182

(1) Derived from audited financial statements

SOURCE Rigel Pharmaceuticals, Inc.

Ryan D. Maynard of Rigel Pharmaceuticals, Inc., +1-650-624-1284,
invrel@rigel.com; or media, Susan C. Rogers of Alchemy Consulting, Inc.,
+1-650-430-3777, susan@alchemyemail.com, for Rigel Pharmaceuticals, Inc.