Rigel(US:RIGL)2024-03-05 21:06Revenue Performance - Total revenues for 2023 were $116.9 million, a decrease of $3.4 million or 2.8% from $120.2 million in 2022[584]. - Total revenues decreased to $116.882 million in 2023 from $120.242 million in 2022, primarily due to a decline in contract revenues from collaborations[657]. - The company incurred a net loss of $25.091 million in 2023, a significant improvement from a net loss of $58.573 million in 2022[657]. - The company reported a net loss of $25,091,000 for the year ended December 31, 2023, compared to a net loss of $58,573,000 in 2022, indicating a 57.3% improvement in losses year-over-year[666]. Product Sales - Product sales, net for 2023 were $104.3 million, an increase of $27.6 million or 36% compared to $76.7 million in 2022[584]. - TAVALISSE net product sales in 2023 were $93.7 million, up by $17.9 million or 24% from $75.8 million in 2022[584]. - REZLIDHIA net product sales in 2023 were $10.6 million, an increase of $9.7 million compared to $0.9 million in 2022[584]. - The company reported net product sales of $104.294 million for the year ended December 31, 2023, an increase of 36% compared to $76.718 million in 2022[657]. Collaboration and Contract Revenues - Contract revenues from collaborations in 2023 were $11.5 million, a decrease of $27.5 million or 70.6% from $39.0 million in 2022[585]. - Revenue from Grifols in 2023 was $8.8 million, primarily related to drug supplies and earned royalty[585]. - The company has potential future contingent payments exceeding $1.3 billion under existing collaboration agreements, with $279.5 million related to development events and $796.0 million to commercial events[743]. - The global exclusive license agreement with Lilly includes up to $330 million in milestone payments for non-CNS disease products and up to $255 million for CNS disease products[746]. Expenses and Costs - Cost of product sales increased to $7.1 million in 2023 from $1.7 million in 2022, primarily due to higher amortization and royalty expenses related to REZLIDHIA[590][591]. - Research and development expense decreased to $24.5 million in 2023 from $60.3 million in 2022, driven by reduced clinical trial expenses and personnel-related costs[592][593]. - Selling, general and administrative expenses were $105.7 million in 2023, a decrease from $112.5 million in 2022, attributed to lower stock-based compensation and various operational cost reductions[603][604]. - Stock-based compensation expense for 2023 was $8,806,000, a decrease from $12,385,000 in 2022, reflecting a 28.5% reduction[666]. Cash Flow and Investments - As of December 31, 2023, the company had approximately $56.9 million in cash, cash equivalents, and short-term investments, a slight decrease from $58.2 million in 2022[610]. - Net cash used in operating activities for 2023 was $(5,743) thousand, a significant improvement from $(73,758) thousand in 2022[611]. - The company received a $20.0 million regulatory milestone payment from Kissei in January 2023, contributing to cash flow from operating activities[612]. - Cash and cash equivalents increased to $32.786 million as of December 31, 2023, compared to $24.459 million in 2022[655]. Liabilities and Financial Commitments - The total liabilities decreased slightly to $145.869 million in 2023 from $147.895 million in 2022[655]. - The company has a credit facility with MidCap, with an outstanding principal amount of $60.0 million as of December 31, 2023, maturing on September 1, 2026[620]. - The company is responsible for funding development costs for R552 up to $22.6 million through April 1, 2024, with $18.6 million billed by Lilly as of December 31, 2023[628]. - Future interest payments associated with the credit facility are estimated at $9.4 million, with approximately $4.4 million payable within 12 months[634]. Clinical Development and Strategic Initiatives - The company is advancing its IRAK1/4 inhibitor program in a Phase 1b trial for patients with lower-risk MDS[566]. - Strategic collaborations with MD Anderson and CONNECT are ongoing to evaluate REZLIDHIA in AML and pediatric patients with HGG[568]. - The company has a RIPK1 inhibitor program in clinical development with partner Lilly[569]. - The company entered into an Asset Purchase Agreement with Blueprint in February 2024 to acquire rights to GAVRETO for development and commercialization in the US[567]. Revenue Recognition and Accounting Policies - Revenue from product sales is recognized when specialty distributors obtain control of the product, with provisions for government-mandated rebates and chargebacks[681]. - The company recognizes revenues from upfront license fees when the license is transferred to the licensee and the licensee can use and benefit from the license[691]. - Future variable consideration related to regulatory and commercial milestones is fully constrained due to uncertainty of success, impacting revenue recognition[759]. - The company will recognize revenue from sales-based milestones and royalties when related sales occur or when performance obligations are satisfied[760].