Rigel (RIGL) AI Stock Analysis

• Market Cap: $332.61M
• Dividend Yield: N/A
• Average Volume (3M): 221.23K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 2.02
• Revenue Growth: 68.74%
• EPS Growth: N/A
• Country: US
• Employees: 162
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): 0.63
• Shares Outstanding: 17,872,433
• 10 Day Avg. Volume: 252,555
• 30 Day Avg. Volume: 221,233
• PEG Ratio: 0.05
• Price to Book (P/B): 95.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.29
• Price Target Upside: 92.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Rigel Pharmaceuticals exhibits strong financial performance with significant revenue and profit growth, alongside effective cash flow management. While the company's high leverage poses a risk, recent improvements in equity and operational efficiency are promising. The technical analysis shows moderate potential, and valuation appears attractive, though lacking a dividend yield. The earnings call confirms robust growth prospects, despite minor concerns. Overall, Rigel is positioned well in the biotechnology sector, with potential for further gains if it maintains its momentum.

Positive Factors

Clinical Trials

Rigel Pharmaceuticals has announced the enrollment of the first patient in its Phase 1 trial evaluating fostamatinib in sickle cell disease, highlighting a significant step forward in exploring the drug's potential to address unmet needs in this condition.

International Expansion

Approval from the Korean Ministry of Food and Drug Safety for Tavalisse boosts Rigel's presence in the international market.

Revenue Growth

Rigel Pharmaceuticals reported higher-than-expected revenue growth, primarily driven by stronger-than-projected sales of Gavreto and Tavalisse.

Negative Factors

Product Portfolio

The company aims to continue expanding its commercial portfolio and drive product sales by broadening access to its therapies beyond the U.S.

Strategic Decisions

Rigel decided not to exercise its opt-in right for ocadusertib under its agreement with Eli Lilly, based on internal strategic prioritization.

Rigel Business Overview & Revenue Model

Company Description

Rigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat hematologic disorders, cancer, and rare immune diseases. The company offers Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia. It also develops Fostamatinib that is in phase III clinical trial for the treatment of warm autoimmune hemolytic anemia; phase III clinical trial for the treatment of hospitalized COVID-19 patients; and phase III clinical trial for the treatment of COVID-19. In addition, the company is developing R289, an oral interleukin receptor associated kinase 1/4 inhibitor, which is in phase I clinical trial for autoimmune, inflammatory, and hematology-oncology diseases; and R552, a receptor-interacting serine/threonine-protein kinase 1 inhibitor that has completed phase I clinical trial for autoimmune and inflammatory diseases. It has research and license agreements with AstraZeneca AB for the development and commercialization of R256, an inhaled JAK inhibitor; BerGenBio AS for the development and commercialization of AXL inhibitors in oncology; and Daiichi Sankyo to develop murine double minute 2 inhibitors for solid and hematological malignancies, as well as license and supply agreement with Kissei Pharmaceutical Co., Ltd. to develop and commercialize Fostamatinib. The company also has a license agreement and strategic collaboration with Eli Lilly and Company to co-develop and commercialize R552 for various indications, including autoimmune and inflammatory diseases, as well as other non-central nervous system (non-CNS) disease development candidates. Rigel Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in South San Francisco, California.

How the Company Makes Money

Rigel Pharmaceuticals generates revenue through the commercialization of its pharmaceutical products, primarily focusing on its flagship product, TAVALISSE (fostamatinib disodium hexahydrate), an oral spleen tyrosine kinase (SYK) inhibitor for adult chronic immune thrombocytopenia (ITP). The company earns money from product sales, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. Additionally, Rigel receives milestone payments and royalties from partnerships that leverage its proprietary compounds and technologies. These strategic collaborations are crucial for the company's financial growth, enabling it to share research and development costs and expand its market presence.

Rigel Financial Statement Overview

Summary

Rigel has demonstrated strong revenue growth and improved profitability, with a significant improvement in net profit margin. However, historical volatility and high leverage pose risks.

Income Statement

Rigel has demonstrated a strong revenue growth of 53.4% from 2023 to 2024, with a significant improvement in net profit margin from negative in 2023 to 9.75% in 2024. The gross profit margin remains robust at 89.59%. The positive EBIT and EBITDA margins in 2024 reflect improved operational efficiency. However, the company has historically experienced volatility in profitability, which poses potential risks.

Balance Sheet

The debt-to-equity ratio is high due to low stockholders' equity, indicating significant leverage at 18.24. Despite this, the company has managed to turn equity positive in 2024, a positive sign after a negative equity period. The equity ratio remains low at 2%, highlighting a significant reliance on debt financing, which could be risky if revenue growth slows.

Cash Flow

Rigel's free cash flow has improved significantly, with a free cash flow growth rate of 251.5% from 2023 to 2024. The operating cash flow to net income ratio is 1.8, indicating strong cash generation relative to earnings. The free cash flow to net income ratio of 1.8 also reflects efficient cash flow management. However, prior years showed negative cash flows, suggesting a need for sustained performance.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
179.28M	116.88M	120.24M	149.24M	108.62M
	Gross Profit
160.63M	109.77M	118.49M	148.15M	107.73M
	EBIT
24.19M	-20.49M	-54.23M	-8.97M	-28.97M
	EBITDA
28.51M	-16.98M	-53.87M	-11.29M	-27.68M
	Net Income Common Stockholders
17.48M	-25.09M	-61.60M	-17.91M	-30.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.32M	56.93M	58.21M	124.97M	57.33M
	Total Assets
163.98M	117.22M	134.28M	167.33M	110.38M
	Total Debt
59.97M	60.58M	41.55M	30.57M	39.09M
	Net Debt
3.22M	27.79M	17.09M	11.68M	8.71M
	Total Liabilities
160.69M	145.87M	147.90M	136.95M	76.35M
	Stockholders Equity
3.29M	-28.64M	-13.62M	30.37M	34.03M
Cash Flow		Free Cash Flow
31.43M	-20.74M	-74.21M	5.25M	-53.45M
	Operating Cash Flow
31.47M	-5.74M	-73.76M	5.88M	-52.19M
	Investing Cash Flow
4.13M	-4.30M	72.78M	-80.04M	47.47M
	Financing Cash Flow
-11.64M	18.37M	6.55M	62.67M	12.57M

Rigel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIGL, the sentiment is Negative. The current price of 18.29 is below the 20-day moving average (MA) of 18.43, below the 50-day MA of 18.74, and above the 200-day MA of 17.83, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 47.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIGL.

Rigel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIGL	74 Outperform	$332.61M	8.83	531.78%	―	68.74%	―
TRDA	62 Neutral	$334.75M	10.76	7.22%	―	5.74%	24.45%
RGNX	55 Neutral	$399.43M	―	-47.44%	―	80.70%	46.66%
Sector *	52 Neutral	$5.22B	3.55	-44.39%	2.82%	15.40%	-0.09%
HRTX	50 Neutral	$312.76M	―	40.36%	―	12.43%	91.67%
IVA	50 Neutral	$496.77M	―	344.74%	―	-47.32%	-26.67%
MREO	43 Neutral	$387.86M	―	-58.31%	―	―	―

Rigel Corporate Events

Rigel Pharmaceuticals Appoints Dr. Frohlich to Board

On March 6, 2025, Rigel Pharmaceuticals appointed Dr. Mark J. Frohlich to its board of directors, where he will serve on several committees, including the Corporate Governance, Health Care Compliance Oversight and Nominating Committee, and the Scientific and Clinical Trial Advisory Committee. Dr. Frohlich will receive standard non-employee director compensation, including cash retainers and stock options, and has been deemed independent under relevant governance guidelines, with no conflicts of interest or family ties within the company.