Rigel Pharmaceuticals Inc. (RIGL, Financial) filed Quarterly Report for the period ended 2012-09-30.
Rigel Pharmaceuticals, Inc. has a market cap of $624.6 million; its shares were traded at around $8.63 with and P/S ratio of 131.5.
$9.50 per share. We received net proceeds of approximately $135.7 million after deducting underwriting discounts and commissions and estimated offering expenses. We believe that our existing capital resources 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, royalty or milestone 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 we granted to it. BerGenBio paid us an upfront payment of $500,000 in August 2011. As our obligations with respect to the deliverables under the agreement were achieved by September 30, 2011, we recognized revenue of $500,000 for the period ended September 30, 2011. In July 2012, we received a second payment of $500,000 from BerGenBio due to us twelve months from June 29, 2011, the effective date of the agreement. We recognized the second payment as revenue in the second quarter of 2012.
Revenues related to collaborative research with our corporate collaborators are recognized as research services are performed over the related development periods for each agreement. Under these agreements, we are required to perform research and development activities as specified in each respective agreement. The payments received are not refundable and are generally based on a contractual cost per full-time equivalent employee working on the project. Our research and development expenses under the collaborative research agreements approximate the revenue recognized under such agreements over the term of the respective agreements. It is our policy to recognize revenue based on our level of effort expended, however, revenue recognized will not exceed amounts billable under the agreement.
There were no contract revenues from collaborations for the three months ended September 30, 2012. Contract revenues from collaborations of $4.4 million for the same period in 2011 consist of $4.3 million payment from Merck Serono and $105,000 from BerGenBio related to our oncology program. The decrease in contract revenues from collaborations for the nine months ended September 30, 2012, compared to the same period in 2011, was primarily due to the final payment of $4.3 million from Merck Serono in 2011, partially offset by revenues in 2012 for the $1.0 million upfront payment from AZ pursuant to our worldwide license agreement for R256, $750,000 payment from Daiichi related to an oncology compound, as well as the $500,000 payment from BerGenBio related to our oncology program. 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, if any.
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Rigel Pharmaceuticals, Inc. has a market cap of $624.6 million; its shares were traded at around $8.63 with and P/S ratio of 131.5.
Highlight of Business Operations:
under the agreement were achieved by September 30, 2011, we recognized revenue of $500,000 for the period ended September 30, 2011. In July 2012, we received a second payment of $500,000 from BerGenBio due to us twelve months from June 29, 2011, the effective date of the agreement. We recognized the second payment as revenue in the second quarter of 2012.$9.50 per share. We received net proceeds of approximately $135.7 million after deducting underwriting discounts and commissions and estimated offering expenses. We believe that our existing capital resources 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, royalty or milestone 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 we granted to it. BerGenBio paid us an upfront payment of $500,000 in August 2011. As our obligations with respect to the deliverables under the agreement were achieved by September 30, 2011, we recognized revenue of $500,000 for the period ended September 30, 2011. In July 2012, we received a second payment of $500,000 from BerGenBio due to us twelve months from June 29, 2011, the effective date of the agreement. We recognized the second payment as revenue in the second quarter of 2012.
Revenues related to collaborative research with our corporate collaborators are recognized as research services are performed over the related development periods for each agreement. Under these agreements, we are required to perform research and development activities as specified in each respective agreement. The payments received are not refundable and are generally based on a contractual cost per full-time equivalent employee working on the project. Our research and development expenses under the collaborative research agreements approximate the revenue recognized under such agreements over the term of the respective agreements. It is our policy to recognize revenue based on our level of effort expended, however, revenue recognized will not exceed amounts billable under the agreement.
There were no contract revenues from collaborations for the three months ended September 30, 2012. Contract revenues from collaborations of $4.4 million for the same period in 2011 consist of $4.3 million payment from Merck Serono and $105,000 from BerGenBio related to our oncology program. The decrease in contract revenues from collaborations for the nine months ended September 30, 2012, compared to the same period in 2011, was primarily due to the final payment of $4.3 million from Merck Serono in 2011, partially offset by revenues in 2012 for the $1.0 million upfront payment from AZ pursuant to our worldwide license agreement for R256, $750,000 payment from Daiichi related to an oncology compound, as well as the $500,000 payment from BerGenBio related to our oncology program. 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, if any.
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