SOUTH SAN FRANCISCO - Rigel (NASDAQ:RIGL) Pharmaceuticals, Inc. (NASDAQ:RIGL) has signed an exclusive license and supply agreement with Kissei Pharmaceutical Co., Ltd. for the development and commercialization of REZLIDHIA® (olutasidenib) in Japan, the Republic of Korea, and Taiwan. This agreement, announced today, builds on Rigel's strategy to extend its global reach, with Kissei obtaining the rights to REZLIDHIA for acute myeloid leukemia (AML) and potential future indications in these territories.
Under the terms of the agreement, Rigel will receive an upfront payment of $10 million from Kissei, with the possibility of additional milestone payments totaling up to $152.5 million. Rigel is also set to receive product transfer price payments based on tiered net sales. Kissei will be responsible for the clinical development and regulatory processes necessary to seek approval for REZLIDHIA in Japan.
REZLIDHIA is currently available in the U.S. for relapsed or refractory mutated isocitrate dehydrogenase-1 (mIDH1) AML, a form of cancer affecting blood and bone marrow. Despite existing treatments, there is still an unmet medical need for well-tolerated therapies, particularly for relapsed or refractory AML.
Rigel's President and CEO, Raul Rodriguez, expressed confidence in Kissei's ability to bring REZLIDHIA to patients in their territories, citing Kissei's track record and the successful launch of TAVALISSE® in Japan. Kissei's Chairman and CEO, Mutsuo Kanzawa, highlighted the medical need in the AML treatment landscape in Japan, where there are an estimated 11,000 patients.
Rigel retains global rights to REZLIDHIA, excluding the specified Asian countries, and is exploring other partnership opportunities outside the U.S. In August 2022, Rigel and Forma Therapeutics, now Novo Nordisk (NYSE:NVO), entered a worldwide license agreement to develop and commercialize REZLIDHIA, with Forma entitled to a portion of Rigel's sublicensing revenue.
This expansion into Asian markets is based on a press release statement and reflects Rigel's ongoing efforts to address hematologic disorders and cancer on a global scale.
In other recent news, Rigel Pharmaceuticals has reported a significant increase in sales for the second quarter of 2024, with net product sales rising by 40% to reach $33.5 million. This surge is largely due to strong sales of TAVALISSE and REZLIDHIA, as well as initial revenue from the newly launched cancer therapy, GAVRETO. The company's ongoing clinical trials and development programs, including the IRAK1 and 4 inhibitor R289 and the RIPK1 inhibitor programs in partnership with Lilly, also continue to progress.
Rigel Pharmaceuticals has indicated its expectation for continued growth in net product sales into the third quarter of 2024. The company's approach to financial discipline and operational efficiency has brought it close to achieving financial break-even.
The successful commercial launch of GAVRETO, along with record-breaking sales for TAVALISSE and REZLIDHIA, underscores a positive outlook for Rigel's product portfolio. These are among the recent developments in the company's business operations.
InvestingPro Insights
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) has recently made headlines with its strategic move to expand the reach of REZLIDHIA® in Asia. As investors consider the potential impact of this expansion on the company's financial health and stock performance, valuable insights emerge from InvestingPro metrics and tips.
Firstly, the company's market capitalization stands at approximately $236.48 million, reflecting its size and the market's current valuation of its business. While Rigel's forward-looking P/E ratio is negative at -16.12, suggesting that the company is not expected to generate net positive earnings in the near term, this is consistent with the InvestingPro Tip that analysts do not anticipate Rigel will be profitable this year. Additionally, the lack of dividend payments, as indicated by another InvestingPro Tip, means that investors are not receiving periodic income from their investment in Rigel shares, which is a common scenario for companies focused on growth and reinvestment.
However, the data also shows a silver lining with strong returns over the last month and three months, at 38.56% and 36.71% respectively. This performance may be reflective of the market's positive reaction to Rigel's recent business developments, including the licensing agreement with Kissei Pharmaceutical. Furthermore, the company's revenue has grown by 7.48% over the last twelve months as of Q2 2024, suggesting an upward trend in its financial performance.
Investors seeking a deeper dive into Rigel's potential can find additional InvestingPro Tips to guide their analysis. There are currently four more tips available on the InvestingPro platform, which can provide further insights into the company's financial health and stock performance.
For those looking to assess Rigel's fair value, InvestingPro offers a fair value estimate of $15.25, which may serve as a reference point for investors comparing the current market price to potential intrinsic value.
As Rigel Pharmaceuticals continues to navigate the complex landscape of drug development and commercialization, these InvestingPro Insights can help investors stay informed and make more data-driven decisions.
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