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On Wednesday, H.C. Wainwright maintained a positive stance on Rigel Pharmaceuticals (NASDAQ:RIGL), with a reiterated Buy rating and a $57.00 price target. The endorsement follows Rigel’s announcement of its fourth-quarter and full-year financial results for 2024, which surpassed both the firm’s and consensus estimates. The company reported earnings per share (EPS) of $0.80 for the fourth quarter and $0.99 for the year, compared to projected figures of $0.65 and $0.84 by H.C. Wainwright, and $0.58 and $0.39 by consensus. According to InvestingPro data, Rigel has maintained profitability over the last twelve months, with a healthy gross profit margin of 76.12%.
Rigel’s fourth-quarter revenue reached $57.6 million, in line with the company’s pre-announcement in January 2025. Product revenues were reported as $31.0 million for Tavalisse, $7.4 million for Rezlidhia, and $8.1 million for Gavreto. The shipment volumes for these products were disclosed as 3,172 bottles of Tavalisse, 565 bottles of Rezlidhia, and 938 bottles of Gavreto. By the end of the year, Rigel had amassed $77.3 million in cash reserves. InvestingPro analysis shows the company’s impressive revenue growth of 21.65% over the last twelve months, with a market capitalization of approximately $389 million. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
Looking ahead to 2025, Rigel is set to further expand its commercial portfolio and aims to increase product sales by extending the availability of its therapies beyond the United States. The company is actively seeking international partnerships to introduce its products to global markets. With the stock showing strong momentum, having gained over 64% in the past six months, InvestingPro indicates that net income is expected to grow this year, supporting the company’s expansion plans.
Rigel is progressing with its clinical trials, including the Phase 1b trial of R289, an IRAK1/4 inhibitor, for patients with lower-risk myeloid dysplastic syndrome (LR-MDS). The trial has completed enrollment for the fifth dose level and is now enrolling for the sixth. Results from the dose escalation study are anticipated to be presented at a medical meeting in the second half of 2025, likely at the American Society of Hematology (ASH) conference. Rigel also plans to discuss a potential registrational pathway for R289 with the FDA within the year.
Additionally, the company has commenced enrollment for the Phase 2 TarGet-D clinical trial, which will evaluate the use of olutasidenib and temozolomide as post-radiotherapy maintenance, followed by olutasidenib monotherapy, in patients aged 12-39 with newly diagnosed IDH1-mutant high grade glioma (HGG). A Phase 2 trial for recurrent glioma is also set to begin. The reiterated Buy rating and price target reflect these developments and the company’s strong performance.
In other recent news, Rigel Pharmaceuticals Inc. reported strong financial results for the fourth quarter of 2024, showcasing a year of significant growth. The company announced a full-year net income of $17.5 million, marking its first profitable year, with net product sales increasing by 39% to $145 million. Notably, Q4 2024 net product sales grew by 58% year-over-year, reaching $46.5 million. Rigel Pharmaceuticals projects a 30% growth in net product sales for 2025, with anticipated total revenue between $200 million and $210 million.
Despite these positive financial results, Rigel’s stock experienced a decline, which may reflect investor caution. The company remains optimistic about its future, expecting continued growth in its hematology and oncology portfolio. Rigel Pharmaceuticals also announced plans to advance its R289 Phase 1b study and initiate a Phase 2 study in recurrent glioma. These developments indicate a strategic focus on expanding its commercial portfolio and product pipeline.
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