Rigel reports net income of $27.0M for second-quarter 2010

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the second quarter and six months ended June 30, 2010.

For the second quarter of 2010, Rigel reported a net income of $27.0 million, or $0.52 and $0.51 per basic and diluted share, respectively, compared to a net loss of $29.9 million, or $0.81 per basic and diluted share, in the same period of 2009. Basic weighted average shares outstanding for the second quarters of 2010 and 2009 were 52.0 million and 36.7 million, respectively. Diluted weighted average shares outstanding for the second quarters of 2010 and 2009 were 52.5 million and 36.7 million, respectively.

Contract revenue in the second quarter of 2010 was $49.5 million. This was an amortization of the $100.0 million upfront payment from AstraZeneca AB (AZ) pursuant to the exclusive worldwide license agreement for fostamatinib disodium (FosD, previously referred to as R788). Rigel is recognizing the upfront payment ratably over the six-month transition period from the effective date of March 26, 2010. As of June 30, 2010, $47.3 million of the upfront payment has been deferred. Rigel expects that this deferred amount will be fully recognized as revenue during the three months ending September 30, 2010. There was no contract revenue reported in the second quarter of 2009.

Rigel reported total operating expenses of $22.5 million in the second quarter of 2010, compared to $30.0 million in the same period of 2009. The decrease in operating expenses was primarily due to the completion of two Phase 2b clinical trials (TASKi2 and TASKi3) in July 2009.

For the six months ended June 30, 2010, Rigel reported a net income of $4.7 million, or $0.09 per basic and diluted share, compared to a net loss of $59.8 million, or $1.63 per basic and diluted share, for the same period of 2009.  

As of June 30, 2010, Rigel had cash, cash equivalents and available for sale securities of $187.5 million, compared to $133.3 million as of December 31, 2009. In April 2010, Rigel received an upfront payment of $100.0 million in connection with its worldwide license agreement with AZ. Rigel expects to end 2010 with approximately $170.0 million in cash, cash equivalents and available for sale securities.

"Rigel remains focused on advancing new product candidates into clinical programs," said James M. Gower, chairman and chief executive officer of Rigel. "In addition to our partner's plan to initiate Phase 3 studies of FosD in RA patients later this year, we plan to enter a JAK3 candidate into the clinic for the treatment of transplant rejection by the end of this year and expect to add another new molecule into our pipeline for immune indications in the near future."