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Rigel
(NASDAQ:RIGL)
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Rating:72Outperform
Price Target:
$43.00
▲(17.04% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improved financial performance (strong profitability and positive free cash flow with low current leverage) and an extremely low P/E that suggests discounted valuation. These positives are balanced by mixed technicals, a recent TTM revenue decline and weaker cash conversion, and earnings-call risks around reduced cash, higher costs, and execution/visibility considerations for the VEPPANU launch despite supportive guidance.
Positive Factors
Profitability & Free Cash Flow
Rigel has transitioned from prior loss-making years to sustained profitability and positive free cash flow (operating cash flow and FCF ~ $75.7M and ~$79.4M TTM). High gross margins (~91%) and cash generation strengthen ability to fund R&D and launches without chronic dilution.
Negative Factors
Trailing Revenue Decline
After prior rapid growth, a TTM revenue decline (-7.7%) indicates demand or access headwinds. Sustaining margins and funding pipeline activity depends on arresting this trend or replacing lost growth with new product uptake like VEPPANU; otherwise profitability could be less durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Free Cash Flow
Rigel has transitioned from prior loss-making years to sustained profitability and positive free cash flow (operating cash flow and FCF ~ $75.7M and ~$79.4M TTM). High gross margins (~91%) and cash generation strengthen ability to fund R&D and launches without chronic dilution.
Read all positive factors
Rigel (RIGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$761.95M
Dividend YieldN/A
Average Volume (3M)390.26K
Price to Earnings (P/E)2.4
Beta (1Y)1.90
Revenue Growth3.31%
EPS Growth221.64%
CountryUS
Employees173
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)17.67
Shares Outstanding18,679,865
10 Day Avg. Volume348,996
30 Day Avg. Volume390,259
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.97
Price to Sales (P/S)2.62
P/FCF Ratio10.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$70.33Price Target Upside91.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.46
Revenue Forecast (FY)$303.41M
Rigel Business Overview & Revenue Model
Company Description
Rigel Pharmaceuticals, Inc., a biotechnology company, develops and provides therapies that enhance the lives of patients with hematologic disorders and cancer in the United States. The company offers TAVALISSE, an oral spleen tyrosine kinase inhib...
How the Company Makes Money
Rigel makes money primarily from (1) product sales of its commercial medicines and (2) collaboration and licensing-related revenue. Product revenue is generated from net sales of TAVALISSE and REZLIDHIA in the U.S., which flow through typical biop...
Rigel Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented multiple meaningful commercial and pipeline achievements—most notably the in‑license and imminent launch of VEPPANU with strong phase III efficacy, ongoing commercial revenue growth (14% product sales growth, record TAVALISSE quarter, 27% REZLIDHIA growth), and promising early R289 data with regulatory incentives. These positives are tempered by lower year‑over‑year net income (partly due to one‑time prior‑year items), a substantial decline in cash reserves (~38.5%), higher operating expenses (+~35.7%), modest decline in GAVRETO sales, and significant upfront/milestone/royalty obligations tied to VEPPANU that may pressure margins and cash flow. Overall, the company communicated confident launch readiness and an optimistic strategic trajectory but with near‑term financial and execution risks to monitor.Positive Updates
Q2 Product Revenue Growth
Net product sales of $67.0M for Q2 2026, up $8.1M or 14% year‑over‑year; total revenues of $78.7M (including $11.7M in contract revenues).
Negative Updates
Year‑over‑Year Net Income Decline
Net income was $17.3M in Q2 2026 compared with $59.6M in Q2 2025 (decline of $42.3M). The company noted Q2 2025 included a $40M non‑cash revenue item, which explains much of the YoY difference, but reported net income is materially lower.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Product Revenue Growth
Net product sales of $67.0M for Q2 2026, up $8.1M or 14% year‑over‑year; total revenues of $78.7M (including $11.7M in contract revenues).
Read all positive updates
Company Guidance
Rigel reiterated 2026 financial guidance of approximately $285–$295 million in total revenues, driven by net product sales (excluding VEPPANU) of about $255–$265 million and roughly $30 million in contract revenues, and said it expects reported positive net income for the full year while funding development programs; management also highlighted a ~35% CAGR since 2022 using the midpoint of 2026 net product sales (ex‑VEPPANU). Operational timing metrics included commercial availability of VEPPANU in mid‑August (no standalone sales guidance yet), completion of R289 dose‑expansion enrollment and selection of a recommended Phase II dose in H2 with topline dose‑expansion data expected by year‑end, and Q2 cash and short‑term investments of $95.3 million. Q2 results referenced as context were $67.0 million in net product sales (TAVALISSE $47.4M, GAVRETO $10.7M, REZLIDHIA $8.9M), $11.7M collaboration revenues and $78.7M total revenues, with Q2 net income of $17.3M and total costs and expenses of $55.1M. Transaction terms for VEPPANU cited a $70M upfront payment, $15M transition milestones, up to $320M in potential regulatory/commercial payments, tiered royalties in the mid‑teens to mid‑20s, and Rigel’s commitment to contribute up to $40M over four years to ongoing development.Rigel Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 276.79M | 294.28M | 179.28M | 116.88M | 120.24M | 149.24M |
| Gross Profit | 252.95M | 274.66M | 160.63M | 109.77M | 118.49M | 148.15M |
| EBITDA | 94.03M | 131.56M | 28.51M | -16.98M | -53.87M | -11.29M |
| Net Income | 321.91M | 367.02M | 17.48M | -25.09M | -58.57M | -17.91M |
Balance Sheet | ||||||
| Total Assets | 521.07M | 513.59M | 163.98M | 117.22M | 134.28M | 167.33M |
| Cash, Cash Equivalents and Short-Term Investments | 95.33M | 154.96M | 77.32M | 56.93M | 58.21M | 124.97M |
| Total Debt | 39.95M | 53.30M | 59.97M | 60.58M | 41.55M | 30.57M |
| Total Liabilities | 95.42M | 122.11M | 160.69M | 145.87M | 147.90M | 136.95M |
| Stockholders Equity | 425.42M | 391.48M | 3.29M | -28.64M | -13.62M | 30.37M |
Cash Flow | ||||||
| Free Cash Flow | 79.39M | 75.66M | 31.07M | -20.74M | -74.21M | 5.25M |
| Operating Cash Flow | 79.39M | 75.66M | 31.47M | -5.74M | -73.76M | 5.88M |
| Investing Cash Flow | -49.06M | -92.36M | 4.13M | -4.30M | 72.78M | -80.04M |
| Financing Cash Flow | -22.92M | 601.00K | -11.64M | 18.37M | 6.55M | 62.67M |
Rigel Technical Analysis
Positive
36.74
Price Trends
37.81
Positive
33.50
Positive
35.54
Positive
Market Momentum
1.03
Negative
62.54
Neutral
74.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIGL, the sentiment is Positive. The current price of 36.74 is below the 20-day moving average (MA) of 39.25, below the 50-day MA of 37.81, and above the 200-day MA of 35.54, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 74.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIGL.
Rigel Risk Analysis
Rigel disclosed 59 risk factors in its most recent earnings report. Rigel reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rigel Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $761.95M | 2.41 | 96.49% | ― | 3.31% | 221.64% | |
56 Neutral | $1.04B | -15.43 | -40.40% | ― | -29.03% | 54.11% | |
56 Neutral | $604.06M | -2.67 | -467.49% | ― | 3995.74% | 24.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $703.70M | -2.84 | -220.07% | ― | 12.00% | -9.21% | |
50 Neutral | $277.86M | -1.43 | -33.22% | ― | 215.59% | 22.48% |
* Healthcare Sector Average
RIGL
Rigel
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Rigel Corporate Events
Executive/Board Changes
Rigel Appoints Alison Hannah as New Chief Medical Officer
Neutral
Jul 1, 2026
Rigel Pharmaceuticals, Inc. announced on July 1, 2026 that Alison L. Hannah, M.D., a long-time oncology development consultant and former chief medical officer at other biotech firms, has been appointed Executive Vice President and Chief Medical O...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Rigel Expands Oncology Portfolio with VEPPANU Global Rights
Positive
Jun 17, 2026
Rigel Pharmaceuticals, Inc. has secured exclusive, global rights to develop, manufacture and commercialize VEPPANU (vepdegestrant) and related products under a license agreement with Arvinas, Inc., its affiliates and Pfizer Inc., as previously dis...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rigel Shareholders Approve Equity Plans and Board Slate
Positive
May 20, 2026
At its May 14, 2026 annual meeting, Rigel Pharmaceuticals’ stockholders approved amendments to the company’s 2018 Equity Incentive Plan and 2000 Employee Stock Purchase Plan, adding 500,000 and 360,000 shares, respectively, to the pool...
Business Operations and StrategyProduct-Related Announcements
Rigel Secures Global Rights to VEPPANU Breast Cancer Therapy
Positive
May 12, 2026
On May 11, 2026, Rigel Pharmaceuticals entered into a license agreement with Arvinas and Pfizer to obtain exclusive worldwide rights to develop, manufacture and commercialize VEPPANU (vepdegestrant) and related products, consolidating Rigel’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.