Rigel Pharmaceuticals, Inc. RIGL is set to report its fourth-quarter and full-year 2024 earnings on March 4. The Zacks Consensus Estimate for sales and earnings is pegged at $57.57 million and 42 cents per share, respectively.
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased to 22 cents from 17 cents over the past 60 days. The EPS estimate for 2025 has also jumped 13 cents to $1.05.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
RIGL Estimate Movement
Zacks Investment Research
Image Source: Zacks Investment Research
Earnings Surprise History of RIGL
RIGL beat on earnings in three of the trailing four quarters and missed in the other, delivering an average surprise of 1,754.3%. In the last reported quarter, the company delivered an earnings surprise of 6,900%, as seen in the chart below.
Zacks Investment Research
Image Source: Zacks Investment Research
What Does Our Model Say for RIGL?
RIGL has an Earnings ESP of 0.0% and a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1, #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
RIGL’s Upcoming Q4 Results
Rigel’s first approved product Tavalisse (fostamatinib disodium hexahydrate) showed encouraging uptake in 2024. The drug is the only approved oral SYK inhibitor for the treatment of adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment. The drug is also approved in the EU, UK and Japan.
Last month, Rigel provided preliminary results for the fourth quarter and full year of 2024, along with its outlook for 2025. RIGL expects total revenues of $57.6 million in the fourth quarter, up from $35.8 million in the year-ago period.
Rigel expects quarterly net product sales of $46.5 million and sales of $31.0 million for Tavalisse.
The company is also making good progress with its second FDA-approved product, Rezlidhia (olutasidenib). The drug is indicated for the treatment of adult patients with relapsed or refractory (R/R) mutated isocitrate dehydrogenase-1 (mIDH1) acute myeloid leukemia (AM R/R AML with a susceptible IDH1 mutation as detected by an FDA-approved test. Rigel in-licensed the drug from Forma with exclusive, worldwide rights for its development, manufacturing and commercialization.
Rigel expects to report Rezlidhia net product sales of $7.4 million. It entered into an exclusive license agreement with Dr. Reddy's RDY in November to develop and commercialize Rezlidhia in all potential indications throughout Dr. Reddy's territory, which includes Latin America, South Africa, certain countries in the Commonwealth of Independent States (CIS), India, certain countries in Southeast Asia and North Africa, Australia and New Zealand.
The company added a third product, Gavreto, to its commercial portfolio in 2024. The drug was added to RIGL’s portfolio after the company acquired commercial rights of the drug from Blueprint Medicines Corporation BPMC. Gavreto became commercially available from Rigel in June 2024.
RIGL expects to report Gavreto net product sales of $8.1 million.
Contract revenues from collaborations during the fourth quarter are expected to be approximately $11.1 million. This includes a $4.0 million upfront cash payment from RDY; $3.6 million of revenues from Grifols S.A. related to the delivery of drug supplies and earned royalties; $2.9 million of revenues from Kissei Pharmaceutical related to the delivery of drug supplies; and $0.3 million of revenues from Medison Pharma Trading AG pertaining to delivery of drug supplies and earned royalties.
For 2024, Rigel expects to report total revenues of $179.3 million, including net product sales of $144.9 million and contract revenues from collaborations of $34.4 million.
It expects to report cash, cash equivalents, and short-term investments of approximately $77.3 million for the quarter.
RIGL’s Price Performance and Valuation
Rigel’s shares have surged 50.6% in the past year against the industry’s decline of 13.4%.
Zacks Investment Research
Image Source: Zacks Investment Research
Going by the price/sales ratio, RIGL’s shares currently trade at 1.86x forward sales, lower than its mean of 2.37x but higher than 1.64x for the drug industry.
Zacks Investment Research
Image Source: Zacks Investment Research
Investment Thesis for RIGL
Rigel’s lead drug Tavalisse showed encouraging uptake in 2024. Tavalisse has likely generated $104.8 million in net product sales in 2024. Sales in 2025 should increase further.
Rezlidhia is also showing good traction. Incremental contribution from Gavreto boosted the company's top line in 2024.
These three drugs should help maintain momentum for the company. Rigel anticipates total revenues of approximately $200-$210 million in 2025, including product sales of approximately $185-$192 million. The company also expects to report positive net income in 2025 while funding existing and new clinical development programs.
Apart from these approved drugs, RIGL is developing other drugs, and the pipeline progress has been encouraging.
Last month, the FDA granted Orphan Drug designation to R289, Rigel's potent and selective dual inhibitor of IRAK1 and IRAK4, for the treatment of myelodysplastic syndromes (MDS). RIGL is evaluating the candidate in an ongoing phase Ib study evaluating the safety, tolerability, pharmacokinetics and preliminary activity in patients with lower-risk myelodysplastic syndromes (LR-MDS) who are relapsed or refractory to prior therapies.
The candidate was also granted Fast Track designation by the regulatory body for this indication.
Invest in RIGL Stock
We are optimistic about RIGL, buoyed by its strong performance in 2024 and upbeat guidance for 2025. Growth in Tavalisse sales should fuel top line. Contributions from its other drugs should also boost sales.
A single quarter’s results are not important for long-term investors. Given RIGL's current valuation, we believe there is more room for growth and recommend prospective investors to add the stock to their portfolio.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
