Rigel Pharmaceuticals reports net loss of $16.9 million for fourth quarter 2013

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the fourth quarter and year ended December 31, 2013.

For the fourth quarter of 2013, Rigel reported a net loss of $16.9 million, or $0.19 per share, compared to a net loss of $25.5 million, or $0.30 per share, in the fourth quarter of 2012. Weighted average shares outstanding for the fourth quarter of 2013 and 2012 were 87.4 million and 85.3 million, respectively.

Contract revenue from collaborations in the fourth quarter of 2013 was comprised of a $5.8 million non-refundable payment earned from AstraZeneca AB (AZ) as a result of its continued development of R256 in asthma. There was no contract revenue from collaborations in the fourth quarter of 2012.

Rigel reported total operating expenses of $22.7 million in the fourth quarter of 2013, compared to $25.6 million in the fourth quarter of 2012. The decrease in operating expenses was primarily due to a decrease in research and development costs related to the following three areas: the completion of a Phase 2 clinical study with R343 in asthma in August 2013, a decrease in stock-based compensation expense, and a decrease in bonus compensation expense; and was partially offset by an increase in research and development costs related to fostamatinib in immune thrombocytopenic purpura (ITP). Stock-based compensation expense decreased from $3.3 million in the fourth quarter of 2012 to $1.6 million in the fourth quarter of 2013 primarily because the majority of options granted in 2013 have longer vesting periods and lower valuations as compared to options granted in the same period of 2012. 

For the twelve months ended December 31, 2013, Rigel reported contract revenue of $7.2 million and a net loss of $89.0 million, or $1.02 per basic and diluted share, compared to contract revenue of $2.3 million and a net loss of $98.8 million, or $1.32 per basic and diluted share, in 2012.  Contract revenue in 2013 consisted of a $5.8 million non-refundable payment earned from AZ for its continued development of R256 in asthma, and a non-refundable payment of $1.4 million from Daiichi Sankyo (Daiichi) related to Daiichi's investigational new drug application filing for an oncology compound. Contract revenue in 2012 consisted of a $1.0 million upfront payment from AZ to license R256, a payment of $750,000 from Daiichi related to an oncology compound, and a payment of $500,000 from BerGenBio AS (BerGenBio) for the development of an oncology compound.  

As of December 31, 2013, Rigel had cash, cash equivalents and available-for-sale securities of $212.0 million, compared to $298.2 million as of December 31, 2012.  Rigel expects to end 2014 with cash and investments in excess of $132.0 million, which is expected to be sufficient to fund operations through the second quarter of 2016. 

Rigel presently has five distinct development programs in, or poised to enter, clinical studies this year, including a planned Phase 3 evaluation of fostamatinib as a potential treatment for ITP which is expected to commence by mid-2014, and the results of a Phase 2 study of R348, a topical JAK/SYK inhibitor for the potential treatment of dry eye, expected in the second half of this year. (Note:  see Rigel press release dated January 10, 2014 for more project update information.)  

"As 2014 unfolds, Rigel has a number of significant clinical research projects in the works, which include a good combination of more advanced projects, such as fostamatinib in ITP, and earlier ones, such as R118 in intermittent claudication," said James M. Gower, chairman and chief executive officer of Rigel.  "We look forward to initiating the first of our two pivotal P3 trials of fostamatinib in ITP next month," he added.