citi: Rigel Pharmaceuticals Inc (RIGL)
Non-eventful 1Q09- All Eyes on Phase IIb TASKi Data in July
? Financial Results — RIGL reported non-eventful 1Q09 financial results.
Revenues for the 1Q were $0.0M, same as our and Street consensus estimate
of $0.0M and $0.4M, respectively. EPS came at ($0.82) compared to our and
consensus estimates of ($1.00) and ($0.99), respectively. Variance was
mainly due to lower R&D expenses.
? Update on TASKi trials — Top-line data from both TASKi 2 & 3 are expected in
July.
? Conserving Cash — As of March 31, 2009, RIGL had cash and cash equivalents
of $105M, which the company expects to be sufficient to support operations
until 2Q10.
? Changes to the Model — We are maintaining our 2009-11 revenue estimates.
However, we our 2009-11 operating expenses decrease to $103M, $112M and
$118M, respectively, from $107M, $118M, and $122M. Net-net our EPS
estimates for this time frame increase to ($2.70), ($0.76) and ($2.18),
respectively, from ($2.76), ($0.86) and ($2.27).
? Conclusion — We maintain our Buy rating and believe the major catalyst and
value-creating event for RIGL is a potential partnership agreement after release
of data from the TASKi trials. |
