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Rigel Pharmaceuticals (RIGL)
:RIGL
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Rigel
(NASDAQ:RIGL)
70Outperform
Positive Factors
Financial Performance
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.
Negative Factors
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
$348.86M
Dividend YieldN/A
Average Volume (3M)245.00K
Price to Earnings (P/E)20.1
Beta (1Y)2.38
Revenue Growth53.38%
EPS GrowthN/A
CountryUS
Employees147
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)0.97
Shares Outstanding17,862,959
10 Day Avg. Volume276,041
30 Day Avg. Volume245,004
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.04
Price to Cash Flow (P/CF)6.30
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$39.00Price Target Upside100.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Rigel Business Overview & Revenue Model
Company DescriptionRigel Pharmaceuticals, Inc. (RIGL) is a biotechnology company dedicated to discovering, developing, and providing innovative small molecule drugs that significantly improve the lives of patients with hematologic disorders, cancer, and rare immune diseases. Rigel's research and development efforts are primarily focused on novel targeted therapies and disease-modifying treatments, with a robust pipeline of investigational drugs aimed at addressing unmet medical needs.
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
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.75
Positive
Balance Sheet
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.60
Neutral
Cash Flow
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.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
19.49
Price Trends
20.12
Negative
20.08
Negative
15.78
Positive
Market Momentum
-0.09
Positive
42.65
Neutral
23.62
Neutral
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 19.49 is below the 20-day moving average (MA) of 21.12, below the 50-day MA of 20.12, and above the 200-day MA of 15.78, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 23.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIGL.
Rigel Risk Analysis
Rigel disclosed 58 risk factors in its most recent earnings report. Rigel reported the most risks in the “Finance & Corporate” 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.87B | 12.64 | 38.89% | ― | 31.85% | ― | |
78 Outperform | $5.73B | 16.17 | 27.90% | ― | -6.36% | 4.57% | |
77 Outperform | $13.74B | 32.75 | 8.05% | ― | 17.35% | 151.40% | |
70 Outperform | $348.86M | 20.10 | 531.78% | ― | 53.38% | ― | |
64 Neutral | $128.40B | ― | -3.15% | ― | 11.64% | -114.72% | |
60 Neutral | $13.77B | 262.28 | 0.76% | ― | 14.76% | -88.32% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
RIGL
Rigel
19.49
4.59
30.81%
ACAD
ACADIA Pharmaceuticals
17.19
-2.79
-13.96%
ALKS
Alkermes
34.26
5.79
20.34%
BMRN
BioMarin Pharmaceutical
70.49
-14.69
-17.25%
INCY
Incyte
68.07
8.74
14.73%
VRTX
Vertex Pharmaceuticals
488.34
75.89
18.40%
Rigel Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -11.73% | 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.