Sign in

You're signed outSign in or to get full access.

RP

RIGEL PHARMACEUTICALS INC (RIGL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 was strong operationally: total revenue $69.462M and record net product sales $64.067M; net income $27.900M and diluted EPS $1.46 . Rigel raised FY25 guidance to $285–$290M revenue and $225–$230M net product sales .
  • Results beat Wall Street consensus: revenue $69.462M vs $61.879M*, EPS $1.46 vs $0.90*; net product sales grew 65% YoY with TAVALISSE +70%, GAVRETO +56%, REZLIDHIA +50% . The sequential total revenue decline vs Q2 reflects the $40M non-cash collaboration revenue recognized in Q2 .
  • Management highlighted favorable gross-to-net dynamics (Medicare Part D redesign) and strong commercial execution; FY25 cash rose to $137.1M, supporting pipeline progress (R289 Phase 1b dose expansion started; ASH oral presentation in December) .
  • Catalyst path: guidance raise, ASH oral data for R289, expanding ex-U.S. access (TAVALISSE launch in South Korea) and strategic collaborations (MD Anderson, CONNECT) .

What Went Well and What Went Wrong

  • What Went Well

    • “We are raising our full-year 2025 guidance due to our outstanding commercial performance year-to-date.” — CEO Raul Rodriguez . Net product sales hit a record $64.1M (+65% YoY) across TAVALISSE $44.7M, GAVRETO $11.1M, REZLIDHIA $8.3M .
    • Gross-to-net tailwinds and access: management cited improved patient affordability and efficiency in patient services and distribution supporting demand and margins . CCO: “We have made significant strides in improving the efficiency of both our patient services and distribution network…helped to improve our gross-to-net” .
    • Pipeline execution: R289 Phase 1b dose escalation completed; dose expansion initiated; ASH oral presentation planned with updated data (Oct 28 cutoff) .

  • What Went Wrong

    • Collaboration change: Lilly notified Rigel it will terminate the CNS disease program (effective ~60 days after October notice), reducing optionality in the CNS RIPK1 path .
    • Sequential revenue optics: Q3 total revenue down vs Q2 ($69.462M vs $101.685M) due to Q2’s $40M non-cash collaboration revenue; underscores dependency on non-recurring collaboration accounting in prior quarter .
    • Minor data adjustment: R289 one patient previously categorized with a “minor response” was reclassified after updated transfusion records; management flagged data hygiene rigor .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$53.333M $101.685M $69.462M
Net Product Sales ($USD)$43.550M $58.948M $64.067M
Contract Revenues ($USD)$9.783M $42.737M $5.395M
Net Income ($USD)$11.446M $59.613M $27.900M
Diluted EPS ($)$0.63 $3.28 $1.46

Margins

MetricQ1 2025Q2 2025Q3 2025
EBITDA ($USD)$13.377M*$61.710M*$29.023M*
EBITDA Margin %25.1%*60.7%*41.8%*
EBIT Margin %23.9%*60.1%*40.9%*
Net Income Margin %21.5%*58.6%*40.2%*

Note: *Values retrieved from S&P Global.

Segment breakdown (Net Product Sales)

ProductQ1 2025Q2 2025Q3 2025
TAVALISSE$28.5M $40.1M $44.7M
GAVRETO$9.0M $11.8M $11.1M
REZLIDHIA$6.1M $7.0M $8.3M

Q3 Contract Revenues detail

CounterpartyQ3 2025
Grifols (supplies, royalties)$3.1M
Kissei (supplies)$1.8M
Medison (supplies, royalties)$0.2M

KPIs

MetricQ4 2024Q2 2025Q3 2025
Cash, Cash Equivalents & ST Investments ($USD)$77.321M $108.378M $137.143M
Total Assets ($USD)$163.976M $206.736M $242.534M
Stockholders’ Equity ($USD)$3.288M $81.934M $117.609M

Q3 2025 vs Wall Street Consensus (S&P Global)

MetricConsensus*Actual
Revenue ($USD)$61.879M*$69.462M
Primary EPS ($)$0.9025*$1.46
Revenue – # Estimates5*—
EPS – # Estimates4*—

Notes: *Values retrieved from S&P Global. Actuals per company filings .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD)FY 2025$270–$280M (Aug 5 update) $285–$290M (Nov 4) Raised
Net Product Sales ($USD)FY 2025$210–$220M $225–$230M Raised
Contract Revenues ($USD)FY 2025~$60M (inclusive of $40M non-cash) ~$60M Maintained
Net IncomeFY 2025Positive NI expected Positive NI expected Maintained

Context: Earlier Q1 guidance was $200–$210M total revenue, $185–$192M net product sales, $15–$18M collaboration revenue before the Lilly non-cash revenue update .

Earnings Call Themes & Trends

TopicQ1 2025Q2 2025Q3 2025Trend
Gross-to-net & Medicare Part DPrepared for IRA changes; demand grew; inventory drawdown impacted Q1 Noted IRA coverage gap elimination and $2,000 OOP cap benefits; favorable gross-to-net Continued favorable gross-to-net; improved patient services & distribution efficiencies Improving access and net realized pricing
Product performanceFoundation from TAVALISSE; GAVRETO integration; REZLIDHIA awareness Record net product sales; strong TAVALISSE; REZLIDHIA earlier-line rationale Record net product sales; TAVALISSE +70% YoY Sustained commercial momentum
R289 (IRAK1/4) programFast Track & Orphan designations; dose escalation ongoing Dose escalation completed; FDA alignment; minor responder reclassified Dose expansion initiated; ASH oral with Oct 28 cutoff Advancing toward Phase 2 dose selection
Ex-U.S. accessKorea approval (milestone revenue) Korea launch; partners expanding markets Continued ex-U.S. expansion highlighted Broader geographic reach
Tariffs/macroCFO: potential tariffs risk modest; IP domiciled in U.S. ——Macro risk acknowledged, low expected impact
Collaboration/BDNot opting into Lilly non-CNS cost share (expect $40M non-cash in Q2) Recognized $40M non-cash; late-stage asset focus Lilly terminating CNS program; continuing ocadusertib milestones/royalties Collaboration scope evolving

Management Commentary

  • CEO: “We are raising our full-year 2025 guidance due to our outstanding commercial performance year-to-date…our ability to fund a potentially transformative internal development pipeline.”
  • CFO: “Our net product sales were recorded net of estimated discounts…we reported $5.4 million in contract revenues…bringing our total revenue for the third quarter to $69.5 million.”
  • CCO: “Improving efficiency of both our patient services and distribution network…helped to improve our gross-to-net,” reinforcing access tailwinds from the IRA redesign .
  • CMO: “We will be providing updated data from the dose escalation portion of the R289 study in an oral presentation at ASH…all patients in the 500 mg BID dose level will have 16 weeks of follow-up” .

Q&A Highlights

  • R289 positioning vs RYTELO: Management emphasized different patient populations (heavily pretreated, prior HMA exposure), and plans to explore less heavily pretreated cohorts post dose selection; registrational plans will follow dose expansion and FDA discussions .
  • Priority review potential: Fast Track designation opens the door; outcome depends on dose expansion data quality; transfusion independence remains a key clinical benchmark .
  • Gross-to-net detail: Team did not disclose brand-specific rates; highlighted multiple factors (payer mix, IRA, distribution changes, patient services) driving favorable gross-to-net .
  • ASH expectations: With Oct 28 cutoff, full 16-week follow-up for 500 mg BID cohort; management is “eager to share” data from the final dose group .

Estimates Context

  • Q3 2025 beat: revenue $69.462M vs $61.879M*, EPS $1.46 vs $0.9025*; 5 revenue estimates, 4 EPS estimates. The beat was driven by record net product sales and favorable gross-to-net/affordability tailwinds, with contract revenues of $5.395M from partners .
  • Sequential revenue decline vs Q2 is explained by the absence of Q2’s $40M non-cash collaboration revenue; underlying commercial sales grew sequentially (net product $64.067M vs $58.948M) .

Note: *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Commercial trajectory intact: net product sales rose sequentially and 65% YoY; TAVALISSE strength continues with improved patient affordability (IRA) and better gross-to-net execution .
  • Guidance raised again: FY25 total revenue to $285–$290M and net product sales to $225–$230M; supports positive full-year net income and pipeline funding .
  • Near-term catalysts: ASH oral presentation for R289 dose escalation (Dec) and ongoing dose expansion; watch for transfusion independence/hematologic improvement durability .
  • Collaboration dynamics: Lilly’s CNS program termination narrows that path but ocadusertib in RA continues; royalty/milestone economics remain potential long-term upside .
  • Valuation drivers: sustained gross-to-net favorability, ex-U.S. expansion (e.g., South Korea), and potential R289 pivotal path clarity in 2026 could drive estimate revisions .
  • Risk monitor: dependency on payer dynamics, regulatory timelines for R289, and evolving competitive landscape in lower-risk MDS (e.g., luspatercept, imetelstat) .
  • Trading implications: Post-print, guidance raise and EPS/revenue beat are positive; upcoming ASH data is the next validation event for R289 and could re-rate pipeline value .