A strong stock as of late has been Rigel Pharmaceuticals (RIGL) . Shares have been marching higher, with the stock up 105.8% over the past month. The stock hit a new 52-week high of $43.72 in the previous session. Rigel has gained 146.7% since the start of the year compared to the -1.4% gain for the Zacks Medical sector and the 10.6% return for the Zacks Medical - Drugs industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus E ...

Group 1 - Rigel Pharmaceuticals (NASDAQ: RIGL) experienced a strong momentum with a 68% year-over-year revenue increase in Q1, driven by products TAVALISSE, GAVRETO, and REZLIDHIA showing potential for sustained growth [2] - The company is positioned in the biotech sector, focusing on innovative therapies and pharmaceuticals that have catalysts for potential acquisitions [2] Group 2 - The article emphasizes the importance of continuous monitoring of the healthcare sector for investment opportunities, particularly in companies developing breakthrough therapies [2]

Core Viewpoint - Rigel Pharmaceuticals (RIGL) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2]. Estimate Revisions - Analysts have become increasingly optimistic about Rigel's earnings prospects, as reflected in the upward trend of estimate revisions, which typically correlate with stock price movements [2]. - The consensus earnings estimate for the current quarter is projected at $0.43 per share, representing a year-over-year decline of 38.6%. However, this estimate has increased by 68.32% over the last 30 days, with two upward revisions and no negative changes [6]. - For the full year, the earnings estimate is expected to be $3.87 per share, reflecting a substantial increase of 290.9% from the previous year. Over the past month, three estimates have been raised, with no downward revisions [7]. Zacks Rank - Rigel has achieved a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions. This ranking is associated with a strong historical performance, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. - Stocks with Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500 [8]. Stock Performance - Rigel's shares have increased by 55.3% over the past four weeks, indicating strong investor confidence driven by the positive estimate revisions [9].

Core Insights - U.S. stocks have experienced volatility due to tariff news and disappointing job growth, leading to a significant drop in the S&P 500 [1] - Despite the pullback, investor sentiment remains positive, with ongoing negotiations and expectations of lower interest rates supporting a potential recovery [2] Stock Recommendations - Recommended stocks based on relative price strength include Barrick Mining Corporation, LendingTree, Mercury General Corporation, Rigel Pharmaceuticals, and Levi Strauss & Co. [3] Relative Price Strength Strategy - The potential for considerable returns in stocks is primarily determined by earnings and valuation ratios, alongside their price performance relative to peers [4] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [5] - Stocks that have outperformed the S&P 500 over 1 to 3 months and show solid fundamentals are ideal candidates for investment [6] Analyst Optimism - Positive estimate revisions for upcoming earnings are crucial, as upward revisions typically lead to price gains [7] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [8] - Stocks like Barrick Mining, LendingTree, and Rigel Pharmaceuticals have outperformed the S&P 500 and show strong earnings revisions [8] Company Highlights - **Barrick Mining Corporation**: Expected EPS growth rate of 33.5%, with a 55.6% year-over-year growth estimate for 2025 [10][11] - **LendingTree**: 45.1% growth estimate for 2025, with a trailing four-quarter earnings surprise of approximately 70.8% [11][12] - **Mercury General Corporation**: 1,000% surge in earnings estimate over the past 60 days, with a trailing earnings surprise of about 166% [13][14] - **Rigel Pharmaceuticals**: 170.7% growth estimate for 2025, with an average earnings surprise of 1,840.5% [15][16] - **Levi Strauss & Co.**: 4% year-over-year growth estimate for fiscal 2025, with a 5.7% increase in earnings estimate over the past 60 days [17]

Technical Analysis - Rigel Pharmaceuticals, Inc. (RIGL) has recently reached a key level of support, indicated by the 50-day simple moving average crossing above the 200-day simple moving average, known as a "golden cross" [1] - A golden cross is a bullish technical chart pattern that suggests a potential breakout, formed when a stock's short-term moving average surpasses a longer-term moving average [2] Market Performance - RIGL shares have increased by 56.6% over the past four weeks, indicating strong upward momentum [4] - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [4] Earnings Outlook - RIGL's earnings outlook is positive, with no earnings estimates cut for the current quarter and one revision higher in the past 60 days [4] - The Zacks Consensus Estimate for RIGL has also increased, reinforcing the bullish sentiment [4] Investment Consideration - Given the significant technical indicator and the positive movement in earnings estimates, RIGL is recommended for investors' watchlists [6]

Company Performance - Rigel Pharmaceuticals (RIGL) has seen a significant stock performance, with a 56.6% increase over the past month and a 77.2% gain since the start of the year, outperforming the Zacks Medical sector which is down 7.6% and the Zacks Medical - Drugs industry which has a 5.6% return [1] - The stock reached a new 52-week high of $30.43 in the previous session [1] Earnings and Valuation - Rigel has a strong record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters. In the latest earnings report on August 5, 2025, Rigel reported EPS of $3.28 against a consensus estimate of $1.97, exceeding revenue estimates by 28.99% [2] - The stock currently trades at 11.1X current fiscal year EPS estimates, below the peer industry average of 14.4X, and at 27.6X trailing cash flow compared to the peer group's average of 12.2X [5] Zacks Rank and Style Scores - Rigel holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, meeting the criteria for potential further gains [6] - The company has a Value Score of B, Growth Score of A, and Momentum Score of A, resulting in a combined VGM Score of A [5] Industry Comparison - The Medical - Drugs industry is performing well, ranking in the top 35% of all industries, providing a favorable environment for both Rigel and its peer, Catalyst Pharmaceuticals, Inc. (CPRX) [9] - Catalyst Pharmaceuticals has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, beating consensus estimates by 17.24% [8]

Group 1: Earnings Performance - Rigel Pharmaceuticals reported quarterly earnings of $3.28 per share, exceeding the Zacks Consensus Estimate of $1.97 per share, compared to a loss of $0.06 per share a year ago, representing an earnings surprise of +66.50% [1] - The company posted revenues of $101.69 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 28.99%, compared to year-ago revenues of $36.84 million [2] - Rigel has surpassed consensus EPS estimates four times over the last four quarters [2] Group 2: Stock Performance and Outlook - Rigel shares have increased approximately 34.8% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $50.63 million, and $2.68 on revenues of $236.7 million for the current fiscal year [7] Group 3: Industry Context - The Medical - Drugs industry, to which Rigel belongs, is currently in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Rigel's stock performance [5] - Another company in the same industry, Nektar Therapeutics, is expected to report a quarterly loss of $2.65 per share, with revenues projected to be $10.78 million, down 54.1% from the year-ago quarter [9][10]

Financial Data and Key Metrics Changes - The company achieved net product sales of over $58 million, representing a 76% year-over-year increase, marking the best quarter ever [4][31] - Total revenue for the second quarter was $101.7 million, which included $42.7 million in contract revenues from collaborations [4][31] - The company reported net income of $59.6 million for the second quarter, compared to a net loss of $1 million in the same period in 2024 [32] Business Line Data and Key Metrics Changes - TAVALISSE generated $40.1 million in net product sales, a 52% increase compared to 2024 [31] - GAVRETO net product sales reached $11.8 million, up from $1.9 million in 2024, reflecting a 32% sequential growth [31][12] - Reslidia reported $7 million in net product sales, a 36% increase year-over-year [31] Market Data and Key Metrics Changes - The company raised its total revenue guidance for 2025 to between $270 million and $280 million, up from the previous range of $200 million to $210 million [8][33] - The updated guidance reflects anticipated growth of 45% to 52% compared to 2024, exceeding the roughly 30% growth rate delivered over the last few years [8][34] Company Strategy and Development Direction - The company focuses on growing its hematology and oncology business through commercial execution, advancing its pipeline, and maintaining financial discipline [4][6] - The company is committed to pursuing additional in-licensing deals or acquisitions that fit its commercial capabilities and product focus [6][20] - The development pipeline includes R289, a dual IRAK1 and IRAK4 inhibitor, currently in a Phase Ib clinical study for lower risk MDS [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue growth, citing improved patient affordability and a strong commercial execution strategy [42][51] - The company anticipates continued positive net income for the full year 2025 while funding existing and new clinical development programs [33][34] Other Important Information - The company recognized $40 million in non-cash revenue related to its collaboration with Lilly, following the decision not to exercise its right to share in future development expenses for okaducerptib [5][30] - The company ended the quarter with a cash balance of over $108 million, compared to $77.3 million as of the same period in 2024 [33] Q&A Session Summary Question: Can you split up the percentages contribution to TAVALISSE's growth? - The growth was driven by a higher percentage of new patient starts, accelerated by improved patient affordability in 2025 [41] Question: Is the 32% CAGR from 2021 to 2024 expected to continue into 2026 and beyond? - The company has not provided guidance beyond this year but expects continued growth and confidence in the product's value [50][51] Question: How does the IRA impact shape guidance going forward? - The company expects continued growth in revenues, projecting double-digit growth at the midpoint of guidance [65]

Financial Performance & Guidance - Q2 2025 net product sales reached $58.9 million[81] - Q2 2025 contract revenues from collaborations totaled $42.7 million[81] - Rigel increased its 2025 net product sales guidance to a range of $210 million to $220 million, up from the previous guidance of $185 million to $192 million[14, 86] - The company anticipates total revenue for 2025 to be approximately $270 million to $280 million, revised from the initial estimate of $200 million to $210 million[85] - Rigel reported net product sales of $102.5 million YTD[15] Product Performance - Q2 2025 net product sales for TAVALISSE were $40.1 million[26, 83] - Q2 2025 net product sales for GAVRETO were $11.8 million[29, 83] - Q2 2025 net product sales for REZLIDHIA were $7.0 million[29, 83] R&D and Clinical Development - Rigel is evaluating R289, a dual IRAK1/4 inhibitor, in a Phase 1b study for relapsed/refractory lower-risk MDS[13] - The company plans to initiate a Phase 2 study of olutasidenib in recurrent glioma[13] Strategic Collaborations - Collaboration revenues included $40.0 million from Eli Lilly[83] - Grifols contributed $2.0 million in collaboration revenue[35, 83] - Kissei contributed $0.4 million in collaboration revenue[35, 83] - Medison contributed $0.2 million in collaboration revenue[35, 83]

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Rigel Pharmaceuticals' unaudited condensed consolidated financial statements for periods ending June 30, 2025, are presented, covering balance sheets, income statements, and cash flows Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $53,407 | $56,746 | | Total current assets | $175,393 | $135,103 | | Total assets | $206,736 | $163,976 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $86,636 | $63,299 | | Total liabilities | $124,802 | $160,688 | | Total stockholders' equity | $81,934 | $3,288 | Condensed Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $101,685 | $36,841 | $155,018 | $66,375 | | Income (loss) from operations | $61,103 | $447 | $73,876 | $(6,519) | | Net income (loss) | $59,613 | $(1,030) | $71,059 | $(9,277) | | Diluted EPS | $3.28 | $(0.06) | $3.91 | $(0.53) | Condensed Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $29,644 | $(4,711) | | Net cash (used in) provided by investing activities | $(33,828) | $11,242 | | Net cash provided by (used in) financing activities | $902 | $(3,264) | | Net (decrease) increase in cash | $(3,282) | $3,267 | [Notes to Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Detailed notes cover accounting policies, revenue, collaborations, and debt, including the **$40.0 million** Lilly cost share release - The company's commercial portfolio includes three FDA-approved products: TAVALISSE® (fostamatinib), REZLIDHIA® (olutasidenib), and GAVRETO® (pralsetinib), which began commercialization in June 2024[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - As of June 30, 2025, the company had **$108.4 million** in cash, cash equivalents, and short-term investments and believes these funds are sufficient to support operations for at least the next 12 months[28](index=28&type=chunk)[29](index=29&type=chunk) Disaggregated Revenue (in thousands) | Revenue Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total product sales, net | $58,948 | $33,450 | $102,498 | $59,453 | | Revenues from collaborations | $42,737 | $3,391 | $52,520 | $6,922 | | **Total revenues** | **$101,685** | **$36,841** | **$155,018** | **$66,375** | - On April 30, 2025, Rigel notified Eli Lilly of its decision not to exercise its opt-in right for co-funding ocadusertib development, resulting in the recognition of **$40.0 million** in contract revenue in Q2 2025 from the released cost share liability[51](index=51&type=chunk) - The company acquired the US rights to GAVRETO from Blueprint in February 2024 for a purchase price of **$15.0 million** plus potential future milestones and royalties, accounted for as an asset acquisition[69](index=69&type=chunk)[72](index=72&type=chunk) - As of June 30, 2025, the company had **$60.0 million** in principal outstanding from its credit facility with MidCap, maturing on September 1, 2027, with an interest-only period extending through October 1, 2025[99](index=99&type=chunk)[100](index=100&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q2 and H1 2025 financial results, detailing revenue growth, operating expenses, liquidity, and capital resources [Business Updates](index=42&type=section&id=Business%20Updates) This section details commercial performance of key products, showing significant sales growth, and outlines clinical pipeline progress Net Product Sales Growth - H1 2025 vs H1 2024 | Product | H1 2025 Net Sales (in millions) | H1 2024 Net Sales (in millions) | Increase ($ in millions) | Increase (%) | | :--- | :--- | :--- | :--- | :--- | | TAVALISSE | $68.5 million | $47.5 million | $21.1 million | 44% | | REZLIDHIA | $13.1 million | $10.0 million | $3.1 million | 31% | | GAVRETO | $20.8 million | $1.9 million | $18.9 million | 995% | - The Phase 1b study of R289, an oral IRAK 1/4 inhibitor for lower-risk MDS, completed enrollment in its dose escalation part in July 2025, with updated data and dose expansion planned for the second half of 2025[132](index=132&type=chunk)[133](index=133&type=chunk) - Rigel opted out of future co-funding obligations for the ocadusertib program with Lilly, resulting in the release of a **$40.0 million** cost share liability, recognized as revenue in Q2 2025[139](index=139&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) Operations analysis shows significant Q2 and H1 2025 revenue increases from collaborations and product sales, alongside rising operating expenses Revenue Analysis (in thousands) | Revenue Type | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Product sales, net | $58,948 | $33,450 | $25,498 | $102,498 | $59,453 | $43,045 | | Contract revenues | $42,737 | $3,391 | $39,346 | $52,520 | $6,922 | $45,598 | | **Total revenues** | **$101,685** | **$36,841** | **$64,844** | **$155,018** | **$66,375** | **$88,643** | - The substantial increase in contract revenues for Q2 and H1 2025 was primarily due to the **$40.0 million** non-cash revenue related to the release of the cost share liability from the Lilly collaboration[200](index=200&type=chunk) - Research and development expenses increased by **$3.7 million (32%)** in H1 2025 compared to H1 2024, mainly driven by higher clinical trial costs for the olutasidenib and IRAK 1/4 inhibitor programs[208](index=208&type=chunk) - Selling, general and administrative expenses increased slightly by **$0.5 million (1%)** in H1 2025 compared to H1 2024, with increased personnel costs largely offset by decreased consulting services and stock-based compensation expense[219](index=219&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) Rigel held **$108.4 million** in cash as of June 30, 2025, with sufficient liquidity for 12 months, driven by positive operating cash flow Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash from Operating activities | $29,644 | $(4,711) | | Net cash from Investing activities | $(33,828) | $11,242 | | Net cash from Financing activities | $902 | $(3,264) | - The company has a contractual manufacturing obligation for TAVALISSE that could potentially result in cancellation fees of approximately **$22.5 million**, with **$3.0 million** expected to be due in the remainder of 2025[243](index=243&type=chunk) - Future minimum principal payments on the outstanding **$60.0 million** loan are **$7.5 million** for the remainder of 2025, **$30.0 million** for 2026, and **$22.5 million** for 2027[103](index=103&type=chunk)[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's market risk disclosures, including interest rate sensitivities, since December 31, 2024 - There were no material changes to the company's market risk disclosures during the six months ended June 30, 2025[252](index=252&type=chunk) [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded disclosure controls were effective, with no material changes to internal control over financial reporting this quarter - The principal executive officer and principal financial officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[253](index=253&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[254](index=254&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) Rigel settled patent litigation with Annora Pharma in March 2025, resolving disputes over a generic TAVALISSE version - The company settled patent litigation with Annora concerning a generic version of TAVALISSE, allowing Annora to sell its generic product in Q2 2032 or earlier under certain circumstances[259](index=259&type=chunk) [Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) This section outlines key risks, including product commercial success dependence, clinical failures, competition, regulatory challenges, and manufacturing reliance - The company's prospects are highly dependent on the commercial success of its three products: TAVALISSE, REZLIDHIA, and GAVRETO, with any diminishment adversely affecting the business[263](index=263&type=chunk)[500](index=500&type=chunk) - There is a high risk that drug discovery and development efforts may not generate successful product candidates, and clinical trial failures could harm commercial prospects and delay or eliminate revenue generation[263](index=263&type=chunk)[274](index=274&type=chunk) - The company faces risks from potential generic versions of its products, such as TAVALISSE, which could significantly decrease revenue, following a settlement allowing a generic version to market in Q2 2032 or earlier[328](index=328&type=chunk)[329](index=329&type=chunk) - The business is subject to stringent and evolving privacy and information security laws (e.g., GDPR, CCPA), and failure to comply could result in significant fines, penalties, and reputational harm[287](index=287&type=chunk) - The company lacks its own manufacturing capabilities and relies on third-party manufacturers, exposing it to risks of supply disruption, quality control issues, and regulatory compliance failures[266](index=266&type=chunk)[473](index=473&type=chunk) [Other Information Items (Items 2-6)](index=185&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section covers procedural items, including no unregistered equity sales, no defaults on senior securities, and no Rule 10b5-1 trading plan changes - The company reported no unregistered sales of equity securities, use of proceeds, or defaults upon senior securities for the period[551](index=551&type=chunk)[552](index=552&type=chunk) - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[554](index=554&type=chunk)