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RIGEL PHARMACEUTICALS INC (RIGL)·Q1 2025 Earnings Summary

Executive Summary

  • RIGL delivered Q1 2025 total revenue of $53.3M and diluted EPS of $0.63, materially above Wall Street consensus; revenue beat by ~$9.5M and EPS beat by ~$0.50, driven by strong net product sales and collaboration revenue strength . EPS est: $0.134*; revenue est: $43.87M*.
  • Net product sales rose 68% year over year to $43.6M, with TAVALISSE $28.5M (+35% YoY), REZLIDHIA $6.1M (+25% YoY), and GAVRETO $9.0M; total collaboration revenue was $9.8M (Grifols $4.7M, Kissei $4.6M including a $3.0M milestone) .
  • 2025 guidance maintained: total revenue $200–$210M (excludes ~$40M non-cash revenue expected in Q2 from Lilly collaboration accounting), net product sales $185–$192M, and collaboration revenue $15–$18M; company expects positive full-year net income .
  • Management emphasized commercial execution across all three brands and advancing R289 and olutasidenib programs; non-cash ~$40M collaboration revenue expected in Q2 following decision not to opt-in to ocadusertib development costs with Lilly .

What Went Well and What Went Wrong

What Went Well

  • Commercial momentum: Net product sales +68% YoY; “strong start to the year” and “growing, profitable company” with $11.4M net income in Q1 .
  • Product performance: TAVALISSE achieved $28.5M (+35% YoY) with record quarterly patient demand; GAVRETO $9.0M sequential +11% vs Q4; REZLIDHIA $6.1M (+25% YoY) .
  • External partners/regulatory: $3.0M milestone recognized on Korea TAVALISSE approval; continued ex-U.S. expansion and partner contributions (Grifols, Medison) .

What Went Wrong

  • Sequential decline in net product sales vs Q4 due to expected Q1 inventory drawdown across channels, typical seasonality; management flagged resetting dynamics early in Q1 .
  • Costs and expenses rose to $40.6M (from $36.5M a year ago), primarily personnel and higher R&D for R289/olutasidenib, and higher royalties/amortization tied to sales growth .
  • Potential tariff exposure: management noted uncertainty from global trade tensions affecting third-party manufacturers, not ready to quantify impact (expected modest) .

Financial Results

P&L vs Prior Quarter and Prior Year

MetricQ3 2024Q4 2024Q1 2025
Total Revenue ($USD)$55.307M $57.596M $53.333M
Net Product Sales ($USD)$38.927M $46.522M $43.550M
Contract Revenues ($USD)$16.380M $11.074M $9.783M
Cost of Product Sales ($USD)$8.026M $5.789M $4.409M
R&D Expense ($USD)$6.182M $5.632M $8.436M
SG&A ($USD)$27.043M $29.520M $27.715M
Net Income ($USD)$12.421M $14.341M $11.446M
Basic EPS ($USD)$0.71 $0.81 $0.64
Diluted EPS ($USD)$0.70 $0.80 $0.63
Cash & ST Investments ($USD)$61.114M $77.321M $77.099M
Weighted Avg Diluted Shares (000s)17,648 17,986 18,169

Notes:

  • Net income margin calculated: Q1 2025 = 21.5% (11.446/53.333) based on reported figures .

Segment Net Product Sales

ProductQ3 2024Q4 2024Q1 2025
TAVALISSE$26.3M $31.0M $28.5M
REZLIDHIA$5.5M $7.4M $6.1M
GAVRETO$7.1M $8.1M $9.0M

Additional KPIs

KPIQ1 2025
Net product sales allowances (discounts, rebates, etc.)$16.6M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025$200–$210M $200–$210M Maintained
Net Product SalesFY 2025$185–$192M $185–$192M Maintained
Contract RevenuesFY 2025$15–$18M $15–$18M Maintained
Collaboration Revenue (non-cash)Q2 2025Not previously quantified~$40.0M (excluded from FY guidance) New disclosure
Net IncomeFY 2025Positive Positive Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Commercial executionRecord bottles shipped; adding GAVRETO; strong revenue growth TAVALISSE record demand; GAVRETO +11% seq.; REZLIDHIA awareness building Improving momentum
R289 (IRAK1/4) LR-MDSInitial ASH data; dose level 5 underway Enrolling dose level 6; plan FDA input per Project Optimus; update at ASH H2 Advancing to Phase 1b completion
Olutasidenib (glioma, AML)MD Anderson/CONNECT trials opened; publications Phase 2 recurrent glioma initiation planned; TarGeT-D maintenance combo ongoing Pipeline broadening
Legal/RegulatoryDHCP letter on GAVRETO safety; Kissei REZLIDHIA deal TAVALISSE ANDA litigation settlement; no other ANDA filers known De-risked IP timeline
Tariffs/MacroNot highlightedPotential modest tariff exposure; manufacturing outside U.S.; IP domiciled in U.S. New caution
Ex-U.S. expansionKissei/Knight approvals; partner revenue Korea TAVALISSE approval milestone; partners contributing Ongoing expansion

Management Commentary

  • “With total revenue of $53.3 million for the quarter and continued financial discipline, we were able to generate $11.4 million in net income this quarter...Rigel is a growing, profitable company...” — Raul Rodriguez, CEO .
  • “TAVALISSE...generated $28.5 million...GAVRETO...$9 million...REZLIDHIA...$6.1 million...We grew demand for all 3 brands.” — David Santos, CCO .
  • “We switched...from once daily to twice daily dosing (R289)...to maintain a tonic suppression of inflammation...We will be seeking FDA input...aligning with Project Optimus.” — Lisa Rojkjaer, CMO .
  • “In Q2, we expect to recognize approximately $40 million in collaboration revenue...noncash...related to the release of the remaining cost share liability [Lilly].” — Dean Schorno, CFO .
  • “We anticipate growing our net product sales in 2025 by approximately 30% year-over-year.” — Raul Rodriguez, CEO .

Q&A Highlights

  • Glioma programs: CONNECT TarGeT-D maintenance combo vs planned Rigel Phase 2 in recurrent glioma; focus on PFS and adolescent/young adult cohort in TarGeT-D; more trial details to come later in the year .
  • ANDA litigation: Settlement allows generic TAVALISSE entry in Q2 2032 or earlier under certain circumstances; currently no other ANDA filers known; second filers could theoretically enter earlier only if patents are defeated .
  • Q1 seasonality and IRA changes: Team prepared for Inflation Reduction Act changes; demand grew across brands; inventory drawdown impacted Q1 revenue sequentially as expected .
  • R289 dosing strategy: Transition to BID dosing to sustain inflammatory suppression; FDA alignment midyear per Project Optimus for dose selection .

Estimates Context

  • Q1 2025: Revenue $53.33M vs $43.87M*; Diluted EPS $0.63 vs $0.134*; both significant beats . Values with asterisks retrieved from S&P Global.
  • Q4 2024: Revenue $57.596M vs $57.59M* (in line); Diluted EPS $0.80 vs $0.616* (beat) . Values with asterisks retrieved from S&P Global.
  • Q1 2024: Revenue $29.534M vs $31.47M* (miss); Diluted EPS -$0.47 vs -$0.288* (miss) . Values with asterisks retrieved from S&P Global.
MetricQ1 2024Q4 2024Q1 2025
Revenue Actual ($USD)$29.534M $57.596M $53.333M
Revenue Consensus Mean ($USD)$31.472M*$57.590M*$43.874M*
Primary EPS Actual ($USD, diluted)-$0.47 $0.80 $0.63
Primary EPS Consensus Mean ($USD)-$0.288*$0.616*$0.134*
Primary EPS – # of Estimates6*5*5*
Revenue – # of Estimates6*3*5*

Values with asterisks retrieved from S&P Global.

Key Takeaways for Investors

  • Commercial engine is driving outsized beats: broad-based demand across TAVALISSE, GAVRETO, and REZLIDHIA produced significant EPS and revenue upside versus consensus in Q1, despite seasonal inventory drawdown .
  • Guidance credibility enhanced: management maintained FY revenue and profitability guidance while signaling ~$40M non-cash Q2 collaboration revenue; underlying FY view excludes this accounting item, indicating confidence in core operations .
  • R289 de-risking: BID dosing strategy and planned FDA alignment under Project Optimus, plus Fast Track and Orphan designations, point to disciplined development with near-term data catalysts (H2 update) .
  • REZLIDHIA optionality: expanding trials across AML/MDS and planned glioma study provide medium-term pipeline catalysts; increased awareness post-venetoclax supports commercial growth .
  • IP and ex-U.S. growth: TAVALISSE patent settlement sets earliest generic entry timing (Q2 2032 or earlier under circumstances) and reduces litigation overhang; ex-U.S. partner milestones (Korea) add non-dilutive revenue .
  • Risk watch: potential tariffs on third-party manufacturing and ongoing royalty/intangible amortization pressure on COGS; inventory dynamics can affect quarterly cadence though demand trends remain strong .
  • Trading implications: Q1 beat and maintained guidance, plus visible Q2 non-cash collaboration revenue, are positive near-term catalysts; medium-term thesis hinges on sustained commercial growth and R289/olutasidenib clinical milestones .