Rigel Announces First Quarter 2009 Financi...( SOUTH SAN FRANCISCO Calif. May 5 /- R...)

SOUTH SAN FRANCISCO, Calif., May 5 /PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the first quarter ended March 31, 2009.

For the first quarter of 2009, Rigel reported a net loss of $29.9 million, or $0.82 per share, compared to a net loss of $27.3 million, or $0.79 per share, in the first quarter of 2008. Weighted average shares outstanding for the first quarters of 2009 and 2008 were 36.7 million and 34.4 million, respectively.

Rigel reported total operating expenses of $30.3 million in the first quarter of 2009, compared to $28.7 million in the first quarter of 2008. The increase in operating expenses was primarily due to increases in clinical development and restructuring costs, partially offset by the decrease in stock-based compensation expense. The increase in clinical development expenses was primarily due to the costs associated with the Company's two Phase 2b clinical trials of R788 in rheumatoid arthritis (TASKi2 and TASKi3). As a result of the restructuring implemented in the first quarter of 2009, Rigel recorded restructuring charges of $1.1 million which consisted primarily of severance payments and extended health benefits for the affected employees. Stock-based compensation expenses decreased from $5.8 million in the first quarter of 2008 to $2.3 million in the first quarter of 2009, primarily due to the higher valuation of options granted in the first quarter of 2008 and the full expense recognition of the majority of those options by the end of 2008.

In the first quarter of 2009, Rigel recorded a federal refundable tax benefit of approximately $66,000, which was calculated in accordance with The American Recovery and Reinvestment Act of 2009.

As of March 31, 2009, Rigel had cash, cash equivalents and available for
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