RIGL Stock Surges 41.4% in a Year: Time to Buy or Sell?

Core Viewpoint - Rigel Pharmaceuticals, Inc. (RIGL) has demonstrated significant stock performance, with a 41.4% increase over the past year, contrasting with a 13.4% decline in the biotechnology industry, driven by strong sales of its leading drug Tavalisse and progress in its drug pipeline [1][2]. Group 1: Product Performance - Tavalisse, Rigel's first approved product, generated $104.8 million in net product sales in 2024 and is the only approved oral SYK inhibitor for chronic immune thrombocytopenia (ITP) [3][4]. - Rigel's second FDA-approved product, Rezlidhia, is aimed at treating relapsed or refractory acute myeloid leukemia (AML) and has been licensed from Forma with exclusive worldwide rights [5]. - The company added Gavreto to its portfolio in 2024, which became commercially available in June and contributed positively to the company's revenue [8]. Group 2: Pipeline Development - Rigel is advancing its pipeline, with R289 receiving Orphan Drug designation for myelodysplastic syndromes (MDS) and undergoing a phase Ib study [10]. - The FDA has granted Fast Track designation for R289, and Rigel is also conducting a phase Ib/II trial combining Rezlidhia with other therapies for mIDH1 AML [11]. Group 3: Financial Outlook - Rigel anticipates total revenues of approximately $200-$210 million in 2025, with product sales expected to be around $185-$192 million, and projects positive net income for the year [12]. - The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased to 22 cents from 17 cents, while the estimate for 2025 has risen to $1.05 from $0.92 [14]. Group 4: Valuation and Market Position - RIGL shares currently trade at a price/sales ratio of 1.74x forward sales, lower than its historical mean of 2.38x but higher than the industry average of 1.64x [13]. - The company is viewed positively due to its strong performance in 2024 and optimistic guidance for 2025, suggesting potential for further growth [16][17].