Rigel Announces Fourth Quarter and Year End 2007 Financial Results
For the fourth quarter of 2007, Rigel reported a net loss of $19.0million, or $0.61 per share, compared to a net loss of $15.5 million, or $0.62per share, in the fourth quarter of 2006. Weighted average shares outstandingfor the fourth quarter of 2007 and 2006 were 31.1 million and 25.1 million,respectively.
Rigel reported revenue from collaborations of $8.0 million in the fourthquarter of 2007, compared to $3.1 million reported in the fourth quarter of2006. Revenue in the fourth quarter of 2007 included a $3.0 million milestonepayment from Merck Serono for licensing rights in Japan for Rigel's cancerdrug candidate, R763, and a $5.0 million milestone payment from Pfizer for theinitiation of its Phase 1 clinical trial for R343, a syk kinase inhibitor forthe treatment of allergic asthma.
Total operating expenses were $28.3 million in the fourth quarter of 2007,compared to operating expenses of $20.0 million during the same period in2006. The increase was due to increases in research and developmentexpenditures made in support of Rigel's ongoing clinical programs, includingthe Phase 2 clinical trial for R788 in rheumatoid arthritis, which wascompleted in the fourth quarter of 2007, and personnel costs associated withRigel's 2007 cash incentive plan. Non-cash stock-based compensationrepresented $2.6 million of total operating expenses in the fourth quarter of2007, compared to $2.4 million in the fourth quarter of 2006.
For the year ended December 31, 2007, Rigel had revenue of $12.6 millionand a net loss of $74.3 million, or $2.57 per share. This compares torevenues of $33.5 million and a net loss of $37.6 million, or $1.51 per sharefor the same period in 2006. The decrease in revenue is due to variousmilestone and upfront payments from Merck, Merck Serono and Pfizer recognizedin 2006.
As of December 31, 2007, Rigel had cash, cash equivalents and availablefor sale securities of $108.3 million, compared with $112.5 million atSeptember 30, 2007 and $104.5 million at December 31, 2006. During the firstquarter of 2008, we completed a public offering in which we sold 5,000,000shares of our common stock at a price of $27.00 per share. We received netproceeds of approximately $127.5 million after deducting underwritingdiscounts and commissions and offering expenses.
"The recent announcement of the results from our Phase 2 clinical trial inrheumatoid arthritis with our lead drug candidate, R788, has focusedinvestors' interest in Rigel's R&D programs," said James M. Gower, Rigel'schairman and chief executive officer. "As a result of our recent financing,we are positioned to move R788 into advanced clinical studies while continuingdevelopment of new therapeutic opportunities in our pipeline."
About Rigel (http://www.rigel.com)
Rigel is a clinical-stage drug development company that discovers anddevelops novel, small-molecule drugs for the treatment ofinflammatory/autoimmune diseases and cancer, as well as viral and metabolicdiseases. Our goal is to file one new investigational new drug application ina significant indication each year. Rigel has achieved this goal every yearsince 2002. Our pioneering research focuses on intracellular signalingpathways and related targets that are critical to disease mechanisms. Rigel'sproductivity has resulted in seven strategic collaborations with largepharmaceutical partners to develop and market our product candidates. Rigelhas product development programs in inflammatory/autoimmune diseases such asrheumatoid arthritis, thrombocytopenia and asthma, as well as in cancer.
This press release contains "forward-looking" statements, includingstatements related to the timing of results of Rigel's clinica
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