Rigel Pharmaceuticals, Inc.
), which had gained 6% immediately after the announcement of
fourth quarter 2013 results, jumped a further 10.8% in the
subsequent trading session. Overall, Rigel Pharma shares are up
17.5% since the earnings release on Mar 4, before the
commencement of trading on that day.
Rigel Pharma's fourth-quarter 2013 loss of 19 cents per share
was narrower than the Zacks Consensus Estimate of a loss of 24
cents as well as the year-ago loss of 30 cents per share. Top
line improvement and lower operating costs were responsible for
the narrower loss.
Rigel Pharma generated revenues of $5.8 million in the fourth
quarter of 2013, beating the Zacks Consensus Estimate of $2
million. Revenues comprised solely contract revenues. These came
) as a result of the company's continued development of the
candidate R256 for asthma. The company did not generate any
revenues in the year-ago quarter.
Research and development (R&D) expenses came in at $18
million in the fourth quarter of 2013, down 8.7% year over year.
R&D expenses dropped due to the completion of the phase II
study on asthma candidate R343 in Aug 2013. In addition,
stock-based and bonus compensation expenses fell too. General and
administrative expenses decreased 20.6% year over year to $4.6
million in the reported quarter.
AstraZenecahas returned Rigel Pharma the rights to the
pipeline candidate, fostamatinib. AstraZeneca came to this
decision following the below par results of the candidate in the
rheumatoid arthritis indication. Rigel Pharma intends to continue
developing fostamatinib for treating patients suffering from
immune thrombocytopenic purpura (ITP).
The company intends to commence a phase III study on the
candidate in mid-2014 for ITP and a phase II study for IgA
nephropathy in the first half of 2014.
Another candidate, R348, is currently in a phase II study for
the treatment of dry eye. Results are expected in the second half
of this year. We expect investor focus to remain on the company's
pipeline development efforts going forward.
Rigel Pharma reported a 2013 loss (excluding restructuring
costs) of $1.00 per share, narrower than the Zacks Consensus
Estimate of a loss of $1.05 and the 2012 loss of $1.32 per
Full year revenues were $7.2 million, beating the Zacks
Consensus Estimate of $3 million. Revenues in 2012 were $2.3
Rigel Pharma currently carries a Zacks Rank #3 (Hold).
Investors looking for better-ranked stocks in the medical sector
may consider companies like
Gilead Sciences Inc.
). Both have a Zacks Rank #1 (Strong Buy).
ALKERMES INC (ALKS): Free Stock Analysis
ASTRAZENECA PLC (AZN): Free Stock Analysis
GILEAD SCIENCES (GILD): Free Stock Analysis
RIGEL PHARMCTCL (RIGL): Free Stock Analysis
To read this article on Zacks.com click here.