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Biotech / Medical : Rigel Pharmaceuticals, Inc. (RIGL) -- Ignore unavailable to you. Want to Upgrade?

To: keokalani'nui who wrote (156)	11/10/2003 9:14:50 PM
From: mopgcw	Read Replies (2) \| Respond to of 566

CSFB Report from a Yahoo post: We initiate coverage of Rigel at Outperform and set a 12-month target price of $26 (discounted sum of the parts). Rigel trades at $13.90 per share. We believe that its hepatitis C small molecule program alone is worth more than $14 per share. Rigel will have two potential $1B drug candidates from novel drug classes in the clinic in 2003 and a drug discovery platform that could yield multiple cancer product candidates entering the clinic in 2005. All this potential is for a development-stage company with a $200M market capitalization. • Rigel has a leading position in small molecule SyK inhibition for allergy/asthma and rheumatoid arthritis. SyK is critical to mast cell activation. Our consultants believe that SyK inhibition is one of the most promising approaches to allergy/asthma, a potential $1B opportunity. Rigel’s lead candidate, R112 (intranasal) has shown activity in a Phase Ib/IIa study in allergic rhinitis. Advanced clinical studies could begin in spring 2004. A next-generation compound (by inhalation) could enter the clinic for treatment of asthma in H2:04. Rigel could file an IND in mid-2004 to begin clinical studies in rheumatoid arthritis with a systemic SyK inhibitor. • Rigel discovered and retains all rights to R803, a small molecule candidate for hepatitis C that could enter the clinic by year-end 2003. R803 may be the most potent HCV polymerase inhibitor in development. We believe that a safe and effective HCV small molecule drug could have peak sales potential in excess of $1B. • Our 2003-10 EPS estimates are ($3.95), ($2.10), ($2.27), ($2.90), ($3.07), ($1.49), $1.90, and $4.07. We project profitability in 2009 based on approvals in asthma/allergy (2007E) and HCV (2008E). • Key near-term potential stock catalysts include Phase I/II R112 allergen challenge data at the 2003 ACAAI meeting (November 7-12) and initiation of R803 Phase I HCV studies in Q4:03. Target price (12 months) 26.00 (US$) 52 week high - low 15.00 - 5.22 Market cap. (US$m) 205.51 Enterprise value (US$m) 205.51 Region / Country Americas / United States Sector Biotechnology Analyst's Coverage Universe Biotechnology Weighting (vs. broad market) OVERWEIGHT Date 06 November 2003 * Stock ratings are relative to the coverage universe in each analyst's or each team's respective sector. [V] = Stock considered volatile (see Disclosure Section). Price / Indexed S&P500 5 7 9 11 13 15 17 Nov-02 Feb-03 May-03 Aug-03 Daily Nov 06, 2002 - Nov 05, 2003, 11/06/02 = US$14.22 Price Indexed S&P500 On 11/05/03 the S&P 500 index closed at 1,051.81 Year 12/02A 12/03E 12/04E EPS (CSFB adj., US$) -7.42 -3.95 -2.10 Prev. EPS (US$) P/E (x) NM NM NM P/E rel. (%) — — — Q1 EPS -1.74 -1.53 Q2 -2.07 -1.90 Q3 -2.01 -0.78 Q4 -1.59 -0.67 Number of shares (m) IC (12/02A, US$m)