) fourth quarter 2012 loss of 30 cents per share was narrower
than the Zacks Consensus Estimate of a loss of 32 cents and the
year-ago loss of 36 cents. The narrower-than-expected loss was
primarily due to the lower share count in the final quarter of
Rigel Pharma did not generate any revenues this quarter as well
as in the prior year quarter. Research and development expenses
came in at $19.8 million in the final quarter of 2012, flat year
over year. General and administrative (G&A) expenses
decreased 3.3% to $5.8 million in the final quarter of 2012.
Rigel Pharma suffered a loss of $1.32 per share in 2012, narrower
than the 2011 loss of $1.36. The Zacks Consensus Estimate for
2012 hinted at a loss of $1.35 per share. Revenues decreased
52.6% to $2.3 million in 2012, short of the Zacks Consensus
Estimate of $3 million.
All revenues in 2012 came from contracts. Contract revenue in
2012 primarily consisted of a $1 million upfront payment from
) related to pipeline candidate R256 (moderate to severe chronic
asthma). Contract revenue also included a payment of $0.8 million
from Daiichi Sankyo pertaining to an oncology candidate.
We are encouraged by Rigel Pharma's efforts to develop its
pipeline. In Dec 2012, Rigel Pharma and partner AstraZeneca
announced top-line data from the phase IIb OSKIRA-4 study
evaluating the use of oral fostamatinib for rheumatoid arthritis
The OSKIRA (Oral Syk Inhibition in Rheumatoid Arthritis)-4 study
evaluated fostamatinib as a monotherapy in patients who had never
been prescribed a disease-modifying anti-rheumatic drug (DMARD),
or are intolerant or show insufficient response to DMARDs.
The pivotal phase III OSKIRA program is ongoing, results from
which are expected in the second quarter of 2013. AstraZeneca
plans to submit a marketing application in the US by year end.
ASTRAZENECA PLC (AZN): Free Stock Analysis
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Rigel Pharma currently carries a Zacks Rank #4 (Sell).
) are well placed in the pharmaceutical space with a Zacks Rank
#1 (Strong Buy).