RIGEL PHARMACEUTICALS INC Q1 FY2025 earnings call

• Strong start to 2025 with year-over-year net product sales growth of 68% from the commercial portfolio and increased collaboration revenue. - Dave Santos provided an update on the commercial business, highlighting growth in TAVALISSE, GAVRETO, and REZLIDHIA, including details on distribution network streamlining for TAVALISSE, GAVRETO's growth under ownership, and efforts to raise awareness for REZLIDHIA. - Lisa Rojkjaer provided updates on the development pipeline, including progress on R289 in a Phase Ib clinical study for lower-risk MDS and plans to initiate a Phase II study for olutasidenib in recurrent glioma. - Discussed the decision to not exercise the right to share in future development expenses for ocadusertib (R552) partnered with Lilly, to invest in internal pipeline assets instead. - Emphasized focus on commercial growth while maintaining financial discipline and advancing the development pipeline.

For the first quarter of 2025, Rigel Pharmaceuticals reported net product sales growth of 68% from its expanding commercial portfolio. Net product sales were $43.6 million. TAVALISSE had net product sales of $28.5 million, a 35% year-over-year growth. GAVRETO had net product sales of $9 million, a 15% year-over-year growth (third full quarter in the portfolio). REZLIDHIA had net product sales of $6.1 million, a 25% year-over-year growth. Total revenue for the quarter was $53.3 million, with net income of $11.4 million. Contract revenues from collaborators were $9.8 million, bringing total revenues to $53.3 million.

• Anticipates 2025 total revenue of $200 million to $210 million. - Expects net product sales of $185 million to $192 million and contract revenues from collaborations of $15 million to $18 million in 2025. - Anticipates reporting net-positive net income for the full year 2025 while funding existing and new clinical development programs. - Notes that 2025 revenue guidance excludes approximately $40 million in noncash collaboration revenue expected from the Lilly agreement in the second quarter.

• Potential impact of tariffs due to global trade tensions, though expected to be modest. The company's IP is domiciled in the U.S.

Q: Kalpit Patel asked about the TarGeT-D program in high-grade glioma and ANDA filers for TAVALISSE.

A: Raul Rodriguez had Lisa Rojkjaer elaborate on the TarGeT-D program, noting it's an umbrella study for maintenance in post-radiotherapy patients, and stated there are no known ANDA filers for TAVALISSE.

Q: Joe Pantginis inquired about first quarter resets and Medicare changes.

A: Dave Santos and Dean Schorno responded that they are pleased with the progress on all 3 brands, demand continued to grow, and there was an expected drawdown in inventory resulting in 68% year-over-year growth.

Q: Farzin Haque asked about R289 dosing and ANDA filers.

A: Lisa Rojkjaer discussed R289's dosing switch to twice daily and plans to seek FDA input on the recommended Phase II dose. Raul Rodriguez mentioned that while second ANDA filers are technically possible, there are no current notices of such filers for TAVALISSE