Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rigel Pharmaceuticals had a gross margin of 92.17% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rigel Pharmaceuticals Gross Margin % Related Terms
Rigel Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Rigel Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:RI2 vs CBIO, TRAX, GYRE: Gross Margin % Comparison
For the Biotechnology subindustry, Rigel Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rigel Pharmaceuticals Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rigel Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rigel Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rigel Pharmaceuticals (FRA:RI2) has a Gross Margin % of 92.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rigel Pharmaceuticals and its competitors. This is near median its historical median of 98.51. Over the past decade, Rigel Pharmaceuticals' Gross Margin % has ranged from 89.60 to 99.36. According to the industry distribution chart, Rigel Pharmaceuticals ranks #70 out of 736 companies in the Biotechnology industry, placing it in the top 9.5%.
Is Rigel Pharmaceuticals' Gross Margin % too high?
Rigel Pharmaceuticals' current Gross Margin % of 92.17% is near median its 10-year median of 98.51. Over the past 10 years, this metric has ranged from a low of 89.60 to a high of 99.36. The Biotechnology industry median Gross Margin % is 60.91. Rigel Pharmaceuticals' value of 92.17% is 51.3% above this industry median. Based on the distribution chart, Rigel Pharmaceuticals ranks #70 out of 736 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Rigel Pharmaceuticals has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Rigel Pharmaceuticals' Gross Margin % compare to CBIO and TRAX?
According to the Biotechnology industry distribution chart, Rigel Pharmaceuticals ranks #70 out of 736 companies for Gross Margin %. This places Rigel Pharmaceuticals in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.91. Rigel Pharmaceuticals' value of 92.17% is 51.3% above this benchmark. Historically, Rigel Pharmaceuticals' own Gross Margin % has ranged from 89.60 to 99.36 over the past decade. While the company's 10-year median is 98.51 vs. the industry median of 60.91, Rigel Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.91, based on 736 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rigel Pharmaceuticals's current Gross Margin % of 92.17% is 51.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rigel Pharmaceuticals and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rigel Pharmaceuticals's current Gross Margin % is 92.17%, which is near median its own 10-year median of 98.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rigel Pharmaceuticals stock overvalued right now?
Rigel Pharmaceuticals (FRA:RI2) has a current Gross Margin % of 92.17%. The stock's GF Value™ is €23.38, compared to a current price of €31.86 — trading 36.3% above its estimated fair value. The current Gross Margin % is 92.17%, which is near median its 10-year median of 98.51 and 51.3% above the Biotechnology industry median of 60.91. Rigel Pharmaceuticals' overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rigel Pharmaceuticals (FRA:RI2), the current Gross Margin % is 92.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rigel Pharmaceuticals (FRA:RI2) Overvalued in 2026?
Based on GuruFocus' analysis, Rigel Pharmaceuticals stock appears to be overvalued.
The current stock price of €31.86 is trading 36.3% above its estimated GF Value™ of €23.38.
Key valuation signals for FRA:RI2:
Gross Margin %: 92.17% (near median its 10-year median of 98.51)
GF Value™: €23.38 vs. price of €31.86 (36.3% above fair value)
Industry Position: 51.3% above the Biotechnology median (#70 of 736)
No single metric tells the full story. See the FRA:RI2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rigel Pharmaceuticals Inc develops small-molecule drugs for autoimmune, cancer-related, and viral diseases. The firm's primary drug is an oral rheumatoid arthritis drug candidate that has been licensed to AstraZeneca. Astra has taken overall responsibility for developing and marketing the drug and will pay Rigel royalties and milestone payments. Its pipeline product includes TAVALISSE (fostamatinib disodium hexahydrate) tablets, REZLIDHIA (olutasidenib), GAVRETO (pralsetinib), R289, and Ocadusertib (Systemic) - Eli Lilly.
76GF Score
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