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Rigel Pharmaceuticals Inc. (RIGL) filed Quarterly Report for the period ended 2011-09-30.
Rigel Pharmaceuticals Inc. has a market cap of $559.1 million; its shares were traded at around $7.85 with and P/S ratio of 4.5.
This is the annual revenues and earnings per share of RIGL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RIGL.
Highlight of Business Operations:
In June 2011, we entered into an exclusive license agreement with BerGenBio AS (BerGenBio) for the development and commercialization of an oncology program. BerGenBio is responsible for all activities it wishes to perform under the license granted. BerGenBio paid us an upfront payment of $500,000 in August 2011. Under the agreement, our deliverables were: (i) granting a license of rights to our oncology program, and (ii) delivery of a small batch of compound to BerGenBio. We concluded that these deliverables should be accounted for as separate units of accounting. We used management’s best estimate of selling price in the allocation of the upfront payment and recognized revenue of $105,000 and $500,000 for the three and nine months ended September 30, 2011, respectively. This oncology program was developed before we focused our research and development efforts on inflammatory and autoimmune diseases, as well as muscle disorders.Since inception, we have financed our operations primarily through the sale of equity securities, contract payments under our collaboration agreements and equipment financing arrangements. Our research and development activities, including preclinical studies and clinical trials, consume substantial amounts of capital. In June 2011, we completed an underwritten public offering in which we sold 18,745,000 shares of our common stock pursuant to an effective registration statement at a price to the public of $8.00 per share. We received net proceeds of approximately $140.5 million, after deducting underwriting discounts and commissions and offering expenses. As of September 30, 2011, we had approximately $265.7 million in cash, cash equivalents and available-for-sale securities. We believe that our existing capital resources and the anticipated proceeds from our current collaborations will be sufficient to support our current and projected funding requirements through at least the next 12 months. Unless and until we are able to generate a sufficient amount of product and/or royalty revenue, we expect to finance future cash needs through public and/or private offerings of equity securities, debt financings or collaboration and licensing arrangements, as well as through interest income earned on the investment of our cash balances and short-term investments. With the exception of contingent and royalty payments that we may receive under our existing collaborations, we do not currently have any commitments for future funding.
In June 2011, we entered into an exclusive license agreement with BerGenBio for the development and commercialization of an oncology program. BerGenBio is responsible for all activities it wishes to perform under the license granted. BerGenBio paid us an upfront payment of $500,000 in August 2011. Under the agreement, our deliverables were: (i) granting a license of rights to our oncology program, and (ii) delivery of a small batch of compound to BerGenBio. We concluded that these deliverables should be accounted for as separate units of accounting. We used management’s best estimate of selling price in the allocation of the upfront payment and recognized revenue of $105,000 and $500,000 for the three and nine months ended September 30, 2011, respectively. This oncology program was developed before we focused our research and development efforts on inflammatory and autoimmune diseases, as well as for muscle disorders.
Contract revenue from collaborations for the three months ended September 30, 2011 was $4.4 million which included a $4.3 million payment from Merck Serono and the remaining $105,000 related to the upfront payment we received for out-licensing an
oncology program in June 2011. The collaboration agreement between us and Merck Serono was terminated in 2010 and all licenses to aurora kinase inhibitors reverted back to us. Further revenue from Merck Serono pursuant to the terminated collaboration agreement is not expected. Contract revenue in the third quarter of 2010 was $72.3 million from AZ, which included amortization of the upfront payment for the exclusive worldwide fostamatinib license agreement as well as revenue we earned under that agreement for the initiation of the Phase 3 clinical trial program and the transfer of the fostamatinib open label extension study to AZ. Contract revenue from collaborations for the nine months ended September 30, 2011 of $4.8 million included the $4.3 million payment from Merck Serono and the $500,000 upfront payment we received from BerGenBio. Contract revenue from collaborations for the nine months ended September 30, 2010 of $125.0 million included amortization of the $100.0 million upfront payment from AZ and $25.0 million in revenue earned from AZ. The decrease in contract revenue from collaborations for the three and nine months ended September 30, 2011, compared to the same periods in 2010, was primarily due to the full amortization of the $100.0 million upfront payment from AZ and the $25.0 million in revenue earned from AZ, partially offset by the $4.3 million payment from Merck Serono, as well as the $500,000 upfront payment we received from BerGenBio. We have no deferred revenue as of September 30, 2011. Our potential future revenues may include payments from our current collaboration partners and from new collaboration partners with which we enter into agreements in the future.
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