Rigel (RIGL) AI Stock Analysis

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Rigel

(NASDAQ:RIGL)

70Outperform

Rigel's overall score reflects strong financial performance and positive earnings call sentiment, offset by high leverage and valuation concerns. The company's robust revenue growth and profitability are significant strengths, while the high P/E ratio suggests potential overvaluation risks.

Positive Factors

Earnings

Rigel Pharmaceuticals exceeded earnings expectations for both the fourth quarter and full year, indicating strong financial performance.

International Expansion

Approval from the Korean Ministry of Food and Drug Safety for Tavalisse boosts Rigel's presence in the international market.

Strategic Partnerships

Rigel announced an exclusive license and supply agreement with Kissei Pharmaceuticals for the development and commercialization of Rezlidhia in Japan, the Republic of Korea, and Taiwan.

Negative Factors

Adverse Events

R289 was generally well-tolerated, with common adverse events being grade.

Safety Concerns

Rigel announced the issuance of a Dear Health Care Provider letter regarding a new safety signal for Gavreto relating to increased risk of severe infections.

Rigel (RIGL) vs. S&P 500 (SPY)

Market Cap

$298.02M

Dividend YieldN/A

Average Volume (3M)256.54K

Price to Earnings (P/E)17.2

Beta (1Y)2.00

Revenue Growth53.38%

EPS GrowthN/A

CountryUS

Employees162

SectorHealthcare

Sector Strength69

IndustryBiotechnology

Share Statistics

EPS (TTM)0.97

Shares Outstanding17,866,892

10 Day Avg. Volume264,943

30 Day Avg. Volume256,544

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.01

Price to Cash Flow (P/CF)6.20

P/FCF Ratio5.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$39.00

Price Target Upside133.81% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering4

Rigel Business Overview & Revenue Model

Company DescriptionRigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat hematologic disorders, cancer, and rare immune diseases. The company offers Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia. It also develops Fostamatinib that is in phase III clinical trial for the treatment of warm autoimmune hemolytic anemia; phase III clinical trial for the treatment of hospitalized COVID-19 patients; and phase III clinical trial for the treatment of COVID-19. In addition, the company is developing R289, an oral interleukin receptor associated kinase 1/4 inhibitor, which is in phase I clinical trial for autoimmune, inflammatory, and hematology-oncology diseases; and R552, a receptor-interacting serine/threonine-protein kinase 1 inhibitor that has completed phase I clinical trial for autoimmune and inflammatory diseases. It has research and license agreements with AstraZeneca AB for the development and commercialization of R256, an inhaled JAK inhibitor; BerGenBio AS for the development and commercialization of AXL inhibitors in oncology; and Daiichi Sankyo to develop murine double minute 2 inhibitors for solid and hematological malignancies, as well as license and supply agreement with Kissei Pharmaceutical Co., Ltd. to develop and commercialize Fostamatinib. The company also has a license agreement and strategic collaboration with Eli Lilly and Company to co-develop and commercialize R552 for various indications, including autoimmune and inflammatory diseases, as well as other non-central nervous system (non-CNS) disease development candidates. Rigel Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in South San Francisco, California.

How the Company Makes MoneyRigel Pharmaceuticals generates revenue through the commercialization of its pharmaceutical products, primarily focusing on its flagship product, TAVALISSE (fostamatinib disodium hexahydrate), an oral spleen tyrosine kinase (SYK) inhibitor for adult chronic immune thrombocytopenia (ITP). The company earns money from product sales, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. Additionally, Rigel receives milestone payments and royalties from partnerships that leverage its proprietary compounds and technologies. These strategic collaborations are crucial for the company's financial growth, enabling it to share research and development costs and expand its market presence.

Rigel Financial Statement Overview

Summary

Rigel has demonstrated strong revenue growth and improved profitability, with a significant improvement in net profit margin. However, historical volatility and high leverage pose risks.

Income Statement

Positive

Rigel has demonstrated a strong revenue growth of 53.4% from 2023 to 2024, with a significant improvement in net profit margin from negative in 2023 to 9.75% in 2024. The gross profit margin remains robust at 89.59%. The positive EBIT and EBITDA margins in 2024 reflect improved operational efficiency. However, the company has historically experienced volatility in profitability, which poses potential risks.

Balance Sheet

Neutral

The debt-to-equity ratio is high due to low stockholders' equity, indicating significant leverage at 18.24. Despite this, the company has managed to turn equity positive in 2024, a positive sign after a negative equity period. The equity ratio remains low at 2%, highlighting a significant reliance on debt financing, which could be risky if revenue growth slows.

Cash Flow

Positive

Rigel's free cash flow has improved significantly, with a free cash flow growth rate of 251.5% from 2023 to 2024. The operating cash flow to net income ratio is 1.8, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.8 also reflects efficient cash flow management. However, prior years showed negative cash flows, suggesting a need for sustained performance.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
179.28M	116.88M	120.24M	149.24M	108.62M
	Gross Profit
160.63M	109.77M	118.49M	148.15M	107.73M
	EBIT
24.19M	-20.49M	-54.23M	-8.97M	-28.97M
	EBITDA
28.51M	-16.98M	-53.87M	-11.29M	-27.68M
	Net Income Common Stockholders
17.48M	-25.09M	-61.60M	-17.91M	-30.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.32M	56.93M	58.21M	124.97M	57.33M
	Total Assets
163.98M	117.22M	134.28M	167.33M	110.38M
	Total Debt
59.97M	60.58M	41.55M	30.57M	39.09M
	Net Debt
3.22M	27.79M	17.09M	11.68M	8.71M
	Total Liabilities
160.69M	145.87M	147.90M	136.95M	76.35M
	Stockholders Equity
3.29M	-28.64M	-13.62M	30.37M	34.03M
Cash Flow		Free Cash Flow
31.43M	-20.74M	-74.21M	5.25M	-53.45M
	Operating Cash Flow
31.47M	-5.74M	-73.76M	5.88M	-52.19M
	Investing Cash Flow
4.13M	-4.30M	72.78M	-80.04M	47.47M
	Financing Cash Flow
-11.64M	18.37M	6.55M	62.67M	12.57M

Rigel Technical Analysis

Technical Analysis Sentiment

Negative

Last Price16.68

Price Trends

50DMA

20.08

Negative

100DMA

20.48

Negative

200DMA

16.88

Negative

Market Momentum

MACD

-0.78

Positive

RSI

32.74

Neutral

STOCH

11.48

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIGL, the sentiment is Negative. The current price of 16.68 is below the 20-day moving average (MA) of 18.45, below the 50-day MA of 20.08, and below the 200-day MA of 16.88, indicating a bearish trend. The MACD of -0.78 indicates Positive momentum. The RSI at 32.74 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIGL.

Rigel Risk Analysis

Rigel disclosed 60 risk factors in its most recent earnings report. Rigel reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Rigel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	70 Outperform	$298.02M	17.16	531.78%	―	53.38%	―
TRDA	66 Neutral	$297.00M	4.14	19.56%	―	63.38%	―
HRTX	58 Neutral	$290.95M	―	40.36%	―	13.57%	89.73%
RGNX	56 Neutral	$295.19M	―	-79.49%	―	-7.66%	23.04%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%
IVA	43 Neutral	$291.79M	―	344.74%	―	17.91%	-10.55%
MREO	35 Underperform	$302.53M	―	-58.31%	―	―	―

* Healthcare Sector Average

Performance Comparison

RIGL

Rigel

16.68

5.18

45.04%

HRTX

Heron Therapeutics

1.91

-1.04

-35.25%

RGNX

RegenXBio

5.89

-12.13

-67.31%

MREO

Mereo Biopharma Group Plc

1.95

-0.72

-26.97%

IVA

Inventiva

3.36

0.08

2.44%

TRDA

Entrada Therapeutics Inc

7.90

-4.99

-38.71%

Rigel Earnings Call Summary

Earnings Call Date: Mar 4, 2025 | % Change Since: -24.46% | Next Earnings Date: May 6, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong year for Rigel Pharmaceuticals, marked by record-breaking sales, successful product integration, and global expansion. Despite some reliance on inventory build and pending decisions on study designs, the company's achievements in financial performance and R&D progress contribute to a predominantly positive outlook.

Highlights

Record Sales Growth

Rigel Pharmaceuticals achieved its highest commercial portfolio sales ever in 2024, reaching $145 million, representing a 39% growth over 2023.

Introduction of Gavreto

Gavreto, added to the portfolio in June 2024, contributed $17.1 million in net product sales, illustrating a successful transition and integration into Rigel's offerings.

Global Expansion

TAVALISSE received regulatory approvals in Mexico and the Republic of Korea, expanding its global footprint. Additionally, new licensing agreements for Rezlidia were executed in Asia and Latin America.

R&D Progress

Significant progress in the development pipeline, particularly with R289, which showed promising safety and efficacy in a Phase 1b study for lower-risk MDS.

Financial Milestones

The company reported its first full-year net income of $17 million, with a cash balance increase of over $20 million, indicating strong financial discipline.

Lowlights

Inventory Build Impact

Fourth-quarter revenues were partially aided by a year-end increase in inventory in distribution channels, which could lead to a potential drawdown in the first quarter of 2025.

Uncertain Glioma Study Design

The strategy for the Phase 2 study of olutasidenib in glioma is still being developed, with no concrete design or approach yet shared.

Company Guidance

During the Rigel Pharmaceuticals financial conference call for the fourth quarter and full year 2024, key guidance was provided concerning their financial and strategic outlook. The company reported a record high in commercial portfolio sales of $145 million for 2024, marking a 39% increase from the previous year, driven by products like TAVALISSE, Rezlidia, and the newly added Gavreto. Rigel Pharmaceuticals achieved profitability for the first time with a full-year net income of $17 million and increased their cash balance by over $20 million. For 2025, they project net product sales between $185 million and $192 million, representing a 28% to 32% growth. They also anticipate achieving total revenue between $200 million and $210 million, with continued positive net income while funding existing and new clinical development programs. The company plans to advance its pipeline with ongoing Phase 1b studies and strategic collaborations, aiming to maintain financial discipline throughout 2025.

Rigel Corporate Events

Executive/Board Changes

Rigel Pharmaceuticals Appoints Dr. Frohlich to Board

Neutral

Mar 10, 2025

On March 6, 2025, Rigel Pharmaceuticals appointed Dr. Mark J. Frohlich to its board of directors, where he will serve on several committees, including the Corporate Governance, Health Care Compliance Oversight and Nominating Committee, and the Scientific and Clinical Trial Advisory Committee. Dr. Frohlich will receive standard non-employee director compensation, including cash retainers and stock options, and has been deemed independent under relevant governance guidelines, with no conflicts of interest or family ties within the company.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.