Rigel Pharmaceuticals, Inc. (RIGL) Message Board

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Biotech / Medical : Rigel Pharmaceuticals, Inc. (RIGL)

RIGL 28.32

-7.6%

3:59 PM EST

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From: mopgcw	2/24/2009 5:42:37 PM
	of 566

CS: Rigel Pharmaceuticals Inc. (RIGL) Outperform [V] M. Aberman CP: US$ 5.40 TP: US$ 16 CAP: US$ 197.5m 4Q08: Non-Event; Remain Outperform - Raising Estimates • Conclusion: With nothing surprising in the press release, we are updating our model to reflect the results of 4Q08. We continue to believe that Rigel possesses a valuable asset for rheumatoid arthritis in its R788 syk kinase inhibitor. While the safety concerns are warranted, we believe the efficacy, once-daily oral dosing, and management of side effects should outweigh the risks in the larger Phase IIb trials. The partnership delay remains an overhang, but this should be removed with positive Phase IIb results in mid-2009. • What's New? Rigel reported 4Q08 EPS of ($0.91) vs. our estimate of ($0.65 )and consensus of ($0.97). Rigel announced that the $134 M in cash/equivalents at the end of 2008 will take the company through 2Q10 without additional need for capital. • Implication: We remain Outperform rated with a $16 price target. We believe Rigel is undervalued at these levels and we would advise investors to hold the stock for the Phase IIb data over the summer. Positive data from that trial should lead to significant appreciation followed by a partnership deal that could lead to further upside.

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