Rigel(US:RIGL)2022-03-01 21:06Revenue and Sales Performance - Total revenues for 2021 were $149.236 million, an increase of $40.615 million (37.4%) from $108.621 million in 2020[488]. - Product sales, net, reached $63.010 million in 2021, up from $61.696 million in 2020, reflecting an increase of $1.314 million (2.1%) driven by higher sales volumes and prices[488]. - Contract revenues from collaborations increased significantly to $75.726 million in 2021, a rise of $28.801 million (61.3%) compared to $46.925 million in 2020[488]. - The company reported a government contract revenue of $10.500 million in 2021, marking its first recognition in this category[488]. - Lilly accounted for 48% of total revenues in 2021, while McKesson Specialty Care Distribution Corporation and ASD Healthcare contributed 20% and 17%, respectively[488]. - License revenues from collaborations increased significantly to $70.553 million in 2021 from $40.358 million in 2020, marking a growth of 74.7%[634]. - The company generated 48% of its total net product sales from Lilly in 2021, while McKesson Specialty Care Distribution Corporation accounted for 20% and ASD Healthcare and Oncology Supply for 17%[637]. Expenses and Financial Performance - Research and development expenses increased to $65.2 million in 2021 from $60.1 million in 2020, driven by higher costs related to COVID-19 trials and IRAK 1/4 inhibitor program[497]. - Selling, general and administrative expenses rose to $91.9 million in 2021 from $76.6 million in 2020, primarily due to increased commercial activity costs[507]. - Total costs and expenses for 2021 were $161.732 million, up from $137.594 million in 2020, primarily due to increased R&D and administrative expenses[561]. - The company reported a net loss of $17.914 million for the year ended December 31, 2021, compared to a net loss of $29.744 million in 2020, indicating a reduction in losses by 39.8%[633]. - The company reported a comprehensive loss of $18.012 million for 2021, compared to $29.771 million in 2020, indicating a 39.5% improvement[564]. Cash Flow and Liquidity - As of December 31, 2021, cash, cash equivalents, and short-term investments totaled approximately $125.0 million, up from $57.3 million in 2020, an increase of $67.6 million[514]. - Net cash provided by operating activities was $5,878,000 in 2021, compared to $(52,185,000) in 2020, primarily due to cash received from Lilly[515]. - Net cash used in investing activities was $(80,036,000) in 2021, mainly due to net purchases of short-term investments of $79.4 million[518]. - Net cash provided by financing activities was $62,675,000 in 2021, primarily from cash received from Lilly amounting to $57.9 million[519]. - Cash, cash equivalents, and short-term investments totaled approximately $125.0 million as of December 31, 2021, providing sufficient liquidity for at least the next 12 months[577]. Research and Development - Fostamatinib is currently in Phase 3 trials for wAIHA and COVID-19 treatments, indicating ongoing investment in clinical development[468]. - The company has multiple product candidates in development across immunology, hematology, cancer, and rare diseases, showcasing a diverse pipeline[471]. - The company anticipates continued significant research and development expenses as it progresses with ongoing clinical studies, including wAIHA and COVID-19[498]. - Research and development expenses included costs for clinical trials and personnel, with all costs charged as incurred, reflecting the company's commitment to innovation[622]. Collaborations and Agreements - The company has ongoing collaboration agreements with multiple partners, including Grifols and Kissei, to develop and commercialize various drug candidates across different regions[638]. - The global exclusive license agreement with Lilly includes a non-refundable upfront cash payment of $125 million and potential milestone payments totaling $330 million for non-CNS disease products and $255 million for CNS disease products[645]. - The exclusive license agreement with Grifols includes an upfront payment of $30 million and potential total regulatory and commercial milestones of $297.5 million, along with tiered royalty payments that may reach 30% of net sales[651]. - The company recognized $1.8 million of revenue related to a milestone achievement under the Daiichi Collaboration Agreement during the year ended December 31, 2021[665]. Financial Position and Liabilities - As of December 31, 2021, the principal term loan outstanding with MidCap was $20.0 million, with access to an additional $40.0 million subject to certain conditions[526]. - The company has accrued research and development liabilities of $10.4 million as of December 31, 2021, up from $4.9 million in 2020[559]. - The company recorded net liabilities for product sales allowances and discounts amounting to $7.9 million as of December 31, 2021[553]. - The company has a contractual commitment related to its facilities lease amounting to $11.4 million, with $10.5 million payable within 12 months[536]. Accounting and Valuation - Stock-based compensation is recognized using the Black-Scholes model, with significant estimates involved in determining fair value[483]. - The allowance for doubtful accounts is currently not required, based on existing contractual payment terms and actual payment patterns[583]. - The carrying amounts of financial instruments approximate fair value due to their short maturities, including cash and accounts receivable[611]. - Fair value measurements are categorized based on the level of judgment associated with the inputs used, reflecting market-based measurements[613].