Rigel Announces Third Quarter Financial Results
Monday November 4, 8:02 am ET
Company Outlines Progress in Drug Development Programs at CIBC Healthcare Conference
SOUTH SAN FRANCISCO, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL - News) today reported financial results for the third quarter ended September 30, 2002, and discussed the company's progress in its lead drug development programs during a presentation at the CIBC World Markets Health Care Conference.
For the third quarter of 2002, revenues were $3.7 million compared to $4.2 million in the third quarter of 2001. Revenues for the first nine months of the year were $12.1 million, compared to $10.5 million for the same period of 2001. These revenues were derived from research collaborations with pharmaceutical partners.
Total operating expenses for the third quarter of 2002 were $13.8 million, compared to $10.6 million in the same period of 2001. Year to date, total operating expenses were $41.1 million, compared to $29.3 million for this period last year. The increase in expenses reflects the cost of additional clinical development personnel as well as an increase in expenses associated with the start of clinical testing for Rigel's first product. Net loss for the current quarter was $10.1 million, or $0.22 per share, compared to a net loss of $6.2 million, or $0.17 per share, in the third quarter of 2001. Net loss for the first three quarters of 2002 was $29.0 million, or $0.65 per share, compared to a net loss of $17.7 million, or $0.48 per share, for the same period of 2001.
At the end of the third quarter, Rigel had cash, cash equivalents and short-term investments of $36.5 million, compared to $45.6 million at the end of the second quarter.
"Based on our current forecast, which includes proceeds from future anticipated collaborations, we believe that we have the financial resources to take us through at least the next 12 months," said Brian Cunningham, Rigel's president and chief operating officer. "In operational terms, we believe that we can move our first three products into phase I testing and further advance one of them into phase II, pending satisfactory phase I data."
During the company's presentation at the CIBC World Markets Healthcare Conference, Rigel said that it intends to file an Investigational New Drug (IND) application with the U.S. Food and Drug Administration for the company's first product, R112 for allergic rhinitis, before the end of the year. Rigel began testing of this investigational drug in Europe in September and previously reported that no significant adverse events were observed in that safety and feasibility study.
"We're moving ahead expeditiously with clinical testing of R112 and are making good progress in advancing lead compounds in our other programs," Mr. Cunningham noted. "We believe we are on track to achieve our goal of having three products in the clinic by the end of 2003."
Pending results from the next phase of study of R112 for rhinitis, Rigel plans to develop this compound for use in asthma as well. In addition, Rigel is pursuing several other drug leads that have emerged from the same program that produced R112. The company intends to develop these for the treatment of autoimmune disorders such as rheumatoid arthritis.
With regard to the company's second major drug development program, Rigel is in advanced preclinical evaluation for its lead compound to treat hepatitis C. Rigel is moving ahead very aggressively with this molecule, which has been shown in the laboratory to significantly inhibit replication of multiple strains of the hepatitis C virus. For ligases, a new category of cancer target that represents Rigel's third research focus, the company is continuing to identify a large series of these enzymes as potential drug targets. Rigel believes that its ligase program is a leader in the industry, giving the company an advantage in establishing a potential drug portfolio as well as a strong intellectual property position in this emerging field.
About Rigel
Rigel's mission is to become a source of novel, small-molecule drugs to meet large, unmet medical needs. The company's business model is to develop a portfolio of drug candidates and to take these through phase II clinical trials, after which Rigel intends to seek commercialization partners for completion of clinical evaluation, regulatory approval and marketing. Rigel has identified three areas for its lead product research programs: mast cell activation to treat immunologic diseases such as asthma/allergy and autoimmune disorders, an antiviral agent to treat hepatitis C and ubiquitin ligases, a new class of cancer drug target. Rigel has begun clinical testing of its first product, for allergic rhinitis, and plans to follow this with two additional drugs in the clinic by the end of 2003. Rigel's approach to drug discovery is based on advanced, proprietary functional genomics techniques that allow the company to identify targets with a demonstrable role in a disease pathway and to efficiently screen for those that are likely to be amenable to drug modulation. |
