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

To: nigel bates who wrote (467)	2/16/2010 10:52:56 AM
From: software salesperson	Respond to of 566

j. birchenough/r.martins, barclays Equity Research February 16, 2010 Rigel Pharmaceuticals (RIGL - US$ 9.43) 1-Overweight Company Update Large Pharma Deal Better Than Expected Investment Conclusion We are reiterating our 1-Overweight rating on RIGL following today’s partnership with AZN for R788 in RA and other rheumatologic disorders. We believe the deal is one of the best for a biotech company, with full funding, clear timelines to commercialization and attractive financial terms. We believe the deal is better than expected and would buy RIGL here. Summary ?? RIGL announced today a global development and commercialization agreement with Astra Zeneca for syk kinase inhibitor R788 as well as back up compounds for rheumatoid arthritis and other rheumatologic disorders. Terms of the deal include $100M upfront, $345M in development milestones, $800M in sales milestones and tiered double digit royalties that we expect are at the high end for late stage deals of this type. ?? With AZN funding all development and commercialization of R788 and back up compounds, we see significant upside potential for RIGL here. Expert feedback suggests a competitive profile for R788 in the $13B RA market and with phase III initiation in 2H10 and NDA/EMEA filing expected in 2013 outcomes study requirements appear unlikely.