Rigel Announces Q3 2024 Financial Results and Business Update

Rigel Pharmaceuticals, Inc., a biotechnology firm based in South San Francisco, California, has announced its financial outcomes for the third quarter ending September 30, 2024. Rigel focuses on developing therapies for hematologic disorders and cancer. The company has reported total revenue of $55.3 million for the third quarter, with contributions from TAVALISSE® net product sales of $26.3 million, REZLIDHIA® net product sales of $5.5 million, and GAVRETO® net product sales of $7.1 million.

Raul Rodriguez, Rigel's president and CEO, highlighted the company's significant progress in 2024, which includes the acquisition of GAVRETO and substantial revenue growth across its commercial portfolio. Rigel’s commitment to financial discipline has resulted in positive net income for the third quarter and the year-to-date. Rodriguez emphasized the company's focus on maintaining its momentum as the year concludes.

During the third quarter, Rigel entered into an exclusive agreement with Kissei Pharmaceutical Co., Ltd. to develop and commercialize REZLIDHIA in Japan, the Republic of Korea, and Taiwan. This deal included an upfront cash payment of $10.0 million to Rigel, with additional potential milestone payments up to $152.5 million.

Rigel's clinical and development efforts are ongoing, with the company advancing its Phase 1b study of R289, a dual IRAK1/4 inhibitor, in patients with lower-risk myelodysplastic syndrome (LR-MDS). Initial data from this study, which will be presented at the 66th American Society of Hematology (ASH) Annual Meeting, suggest that R289 is generally well tolerated among a heavily pretreated LR-MDS patient population.

In September, Rigel started a Phase 1b/2 clinical trial at The University of Texas MD Anderson Cancer Center. This trial evaluates the combination of decitabine, venetoclax, and REZLIDHIA in patients with mutated isocitrate dehydrogenase-1 (mIDH1) acute myeloid leukemia (AML). This initiative is part of a multi-year strategic development alliance with MD Anderson.

The third quarter financial results showed a total revenue of $55.3 million, which includes $26.3 million from TAVALISSE, $5.5 million from REZLIDHIA, $7.1 million from GAVRETO, and $16.4 million from contract revenue collaborations. Compared to 2023, TAVALISSE net product sales increased by 8%, while REZLIDHIA sales grew by 107%. GAVRETO sales were newly reported as the product became available in June 2024.

Total costs and expenses rose to $41.3 million from $32.6 million in the same period of 2023. This increase was driven by higher product sales costs, sublicensing revenue fees, increased royalties, and amortization of intangible assets. Additionally, personnel-related costs and commercial expenses contributed to the increased expenses.

For the third quarter, Rigel reported a net income of $12.4 million, or $0.71 per share basic and $0.70 per share diluted, compared to a net loss of $5.7 million in the same period of the previous year. This improvement reflects Rigel's effective financial management and increased revenue streams.

For the nine months ending September 30, 2024, total revenues were $121.7 million, up from $74.8 million in the same period of 2023. TAVALISSE net product sales grew to $73.8 million, REZLIDHIA sales increased to $15.6 million, and GAVRETO sales amounted to $9.0 million. The increase in contract revenue was primarily driven by upfront fees and drug supply deliveries.

Rigel’s total costs and expenses for the nine months were $114.1 million, compared to $103.5 million in 2023, resulting from higher product sales costs and related expenses. The company reported a net income of $3.1 million, or $0.18 per share basic and diluted, compared to a net loss of $25.8 million for the same period in 2023.

As of September 30, 2024, Rigel's cash, cash equivalents, and short-term investments totaled $61.1 million, compared to $49.1 million at the end of June 2024 and $56.9 million as of December 31, 2023.

Rigel continues to focus on expanding its commercial and clinical-stage hematology and oncology portfolio, aiming to improve the lives of patients with hematologic disorders and cancer.