Rigel Announces Third Quarter 2008 Financial Results and Clini...( Company to Host Update Confere...)

Company to Host Update Conference Call Today at 8:30 a.m. EST

SOUTH SAN FRANCISCO, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported financial results for the three and nine months ended September 30, 2008.

For the third quarter of 2008, Rigel reported a net loss of $37.7 million, or $1.03 per share, compared to a net loss of $18.9 million, or $0.61 per share, in the third quarter of 2007. Weighted average shares outstanding for the third quarters of 2008 and 2007 were 36.6 million and 31.0 million, respectively.

There were no contract revenues from collaborations reported in the third quarters of 2008 and 2007.

Rigel reported operating expenses of $38.7 million in the third quarter of 2008, compared to $20.4 million in the third quarter of 2007. The increase in operating expenses was primarily due to increases in clinical development expenses and, to a lesser extent, stock-based compensation expense. The increase in clinical development expenses was mainly due to the costs associated with the ongoing Phase 2b clinical trials of R788 in rheumatoid arthritis (TASKi2 and TASKi3). Stock-based compensation expense increased from $2.8 million in the third quarter of 2007 to $6.0 million in the third quarter of 2008, primarily due to the higher valuation of options granted in the first quarter of 2008.

For the nine months ended September 30, 2008, Rigel reported a net loss of $99.0 million, or $2.76 per share, compared to a net loss of $55.3 million, or $1.96 per share, for the same period last year. Rigel recorded no contract revenue from collaborations for the first nine months of 2008, compared with $4.6 million for the same period in 2007.

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