Rigel Pharmaceuticals announces financial results for the third quarter of 2009

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the third quarter and nine months ended September 30, 2009.

For the third quarter of 2009, Rigel reported a net loss of $26.7 million, or $0.70 per share, compared to a net loss of $37.7 million, or $1.03 per share, in the third quarter of 2008. Weighted average shares outstanding for the third quarters of 2009 and 2008 were 38.1 million and 36.6 million, respectively.

Rigel reported total operating expenses of $26.7 million in the third quarter of 2009, compared to $38.7 million in the third 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, a decrease in stock-based compensation expense, and cost savings resulting from our restructuring implemented in the first quarter of 2009. Stock-based compensation expenses decreased from $6.0 million in the third quarter of 2008 to $3.5 million in the third quarter of 2009, primarily due to a higher valuation of options granted in the first quarter of 2008 and full expense recognition of the majority of those options by the end of 2008.

For the nine months ended September 30, 2009, Rigel reported a net loss of $86.5 million, or $2.32 per share, compared to a net loss of $99.0 million in the first nine months of 2008, or $2.76 per share.

As of September 30, 2009, Rigel had cash, cash equivalents and available for sale securities of $156.1 million, compared to $134.5 million as of December 31, 2008. In September 2009, Rigel completed a public offering in which it sold 14,950,000 shares of common stock at a public offering price of $7.25 per share. The aggregate net proceeds of the offering were approximately $101.5 million after deducting underwriting discounts and commissions, and offering expenses.