Rigel forecasts revenue growth in 2025, reports Q4 sales

SOUTH SAN FRANCISCO, Calif. - Rigel Pharmaceuticals , Inc. (NASDAQ:RIGL), currently trading slightly below its InvestingPro Fair Value, today announced preliminary financial results for the fourth quarter of 2024 and provided an outlook for 2025, signaling confidence in continued revenue growth. The company has maintained strong momentum, with InvestingPro data showing impressive revenue growth of 21.65% over the last twelve months. The biotechnology firm, which specializes in treatments for hematologic disorders and cancer, reported an expected total revenue of approximately $57.6 million for the fourth quarter of 2024, marking a significant increase from $35.8 million in the same period of 2023.

The company's net product sales for the quarter are projected at $46.5 million, up from $29.5 million in the prior year. This includes sales from its drugs TAVALISSE®, REZLIDHIA®, and GAVRETO®, which were $31.0 million, $7.4 million, and $8.1 million, respectively. TAVALISSE's annual net product sales surpassed $100 million in 2024, contributing to the company's robust gross profit margin of 76.12%. According to InvestingPro, three analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company's performance.

Contract revenues from collaborations are expected to contribute approximately $11.1 million to the fourth quarter revenue. This includes a $4.0 million upfront payment from Dr. Reddy's Laboratories Ltd. and additional revenues from agreements with Grifols (BME:GRLS) S.A., Kissei Pharmaceutical (TADAWUL:2070) Co., Ltd., and Medison Pharma Trading AG.

Rigel also highlighted the continued advancement of its clinical and development pipeline. The company's investigational compound R289 has been granted Orphan Drug designation by the FDA for the treatment of myelodysplastic syndromes (MDS) and is currently undergoing a Phase 1b clinical study.

Looking ahead, Rigel anticipates total revenue for 2025 to reach between $200 to $210 million, with net product sales projected at approximately $185 to $192 million. The company also expects to report positive net income for the full year while investing in current and new clinical development programs. This outlook aligns with InvestingPro analysis, which indicates strong financial health with an overall score of 2.96 (rated as GOOD) and highlights the company's moderate debt levels and positive earnings trajectory.

The company's cash position as of December 31, 2024, is estimated at $77.3 million, an increase from $56.9 million at the end of 2023. Complete financial results for the fourth quarter and full year 2024 are expected to be released in March 2025.

This business update and future outlook are based on a press release statement from Rigel Pharmaceuticals, Inc.

In other recent news, Rigel Pharmaceuticals has witnessed substantial growth in its Q3 earnings, with total net sales reaching $38.9 million, marking a 44% increase from the same period last year. This surge is attributed to the successful integration of Gavreto and strong sales trends for Tavalisse and Rezlidhia. Notably, Gavreto's sales of $7.1 million surpassed both the analyst's expectation and the consensus estimate. In addition, Rigel's drug, R289, has secured FDA Fast Track designation for MDS treatment, highlighting the potential of this drug to improve patient outcomes.

Citi has maintained a positive outlook on Rigel Pharmaceuticals, raising the stock's price target to $49.00 from the previous $40.00, influenced by the strong sales of Gavreto and the company's robust growth in quarterly revenue. Rigel Pharmaceuticals also announced a $10 million agreement with Kissei to develop Rezlidhia in Asia, with potential future payments reaching up to $152 million.

These recent developments underscore Rigel's focus on strategic growth and product pipeline development, as well as a disciplined approach to finances, as evidenced by achieving net income breakeven for the first time in Q3. As part of its strategic growth, Rigel plans to advance its development pipeline, particularly with R289, and will present data at the American Society of Hematology annual meeting.

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