Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 4 Nov, 25 | RIGL | Buy | USD 30.43 | USD 32.0 | USD 34.0 | Same day | Closed |
14.59%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Rigel Pharmaceuticals, Inc., a biotechnology company, engages in discovering, developing, and providing therapies that enhance the lives of patients with hematologic disorders and cancer. The company's commercialized products include Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia; Rezlidhia, a non-intensive monotherapy for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test; and GAVRETO, a once daily, small molecule, oral, kinase inhibitor for the treatment of adult patients with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer, as well as for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer. It also develops R289, an oral IRAK1/4 Inhibitor, which is in Phase 1b clinical trials for the treatment of hematology-oncology, autoimmune, and inflammatory diseases; and a receptor-interacting serine/threonine-protein kinase 1 (RIPK1) inhibitor program in clinical development with partner Eli Lilly and Company. In addition, the company has product candidates in clinical development with partners BerGenBio ASA and Daiichi Sankyo. The company has strategic development collaboration with The University of Texas MD Anderson Cancer Center for the development of REZLIDHIA (Olutasidenib) in acute myeloid leukemia (AML) and other hematologic cancers. The company was incorporated in 1996 and is headquartered in South San Francisco, California.
Transition to Profitability: Rigel achieved a net income of USD 59.6 million in Q2FY25, compared to a net loss of USD 1.0 million in Q2FY24, signaling a strong turnaround in operational efficiency and financial stability
Significant Growth in Net Product Sales: Net product sales surged by 76%, rising from USD 33.5 million in Q2FY24 to USD 58.9 million in Q2FY25, driven by strong performance of TAVALISSE, GAVRETO, and REZLIDHIA
Dependence on Non-Cash Contract Revenue: Out of the USD 42.7 million in contract revenue in Q2FY25, USD 40 million was non-cash income from the Eli Lilly agreement, which inflates earnings without contributing immediate liquidity
Increase in Operating Costs: Total costs and expenses increased by 11.5%, rising from USD 36.4 million in Q2FY24 to USD 40.6 million in Q2FY25, mainly due to higher R&D and personnel expenses
Rigel’s financial performance remains highly dependent on the commercial success of a limited number of marketed products and milestone revenues from partners, exposing it to revenue concentration and partnership-related risk
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 30.43 | 27.0 | 32.0 | 34.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Second Quarter 2025 Performance: Rigel Pharmaceuticals, Inc., a commercial-stage biotechnology company focused on hematologic disorders and oncology, reported robust financial and operational results for the second quarter ended June 30, 2025. The company achieved total revenue of approximately USD 101.7 million, including USD 58.9 million in net product sales and USD 42.7 million in contract revenues from collaborations. This performance reflected a significant year-over-year improvement, underpinned by strong commercial execution across its product portfolio and strategic partnership income.
Exceptional Revenue and Profitability Growth: During the quarter, Rigel demonstrated strong financial momentum, with net product sales increasing 76% year-over-year from USD 33.5 million in Q2FY24 to USD 58.9 million in Q2FY25, driven by higher contributions from TAVALISSE®, GAVRETO®, and REZLIDHIA®. The company reported net income of USD 59.6 million in Q2FY25, a substantial turnaround from a net loss of USD 1.0 million in Q2FY24. This improvement was largely attributed to increased product revenue, strategic collaboration proceeds, and disciplined cost management.
Pipeline Advancement and Clinical Development Progress: Rigel continued to strengthen its clinical pipeline during the quarter. The company completed enrollment in the dose escalation phase of its ongoing Phase 1b trial evaluating R289, a dual IRAK1/4 inhibitor, in patients with relapsed or refractory lower-risk myelodysplastic syndromes (MDS). Updated data from this study are expected later in 2025, with plans to initiate the dose expansion phase in the second half of the year. Additionally, Rigel presented multiple data sets at major oncology conferences, highlighting the clinical potential of olutasidenib and pralsetinib across different cancer indications.
Strategic Collaborations and Licensing Updates: The company strengthened its partnership network through key licensing and development agreements. In April, Rigel notified Eli Lilly and Company of its decision not to exercise its opt-in rights for ocadusertib (R552) in non-CNS indications, resulting in the recognition of USD 40 million in non-cash revenue in Q2FY25. The company remains eligible for milestone and royalty payments from this collaboration. Moreover, Rigel’s international presence expanded through its partner Kissei Pharmaceutical Co., Ltd., which facilitated the commercial launch of TAVALISSE® in South Korea in early July 2025.
Improved Financial Position and Expense Management: Total costs and expenses rose modestly to USD 40.6 million in Q2FY25, up from USD 36.4 million in Q2FY24, primarily due to higher product-related costs, increased R&D spending linked to R289 and olutasidenib, and higher personnel expenses. Despite the increase in operating costs, Rigel’s profitability surged, supported by its diversified revenue base and improved sales efficiency. The company’s cash, cash equivalents, and short-term investments stood at USD 108.4 million as of June 30, 2025, up from USD 77.3 million at the end of 2024, reflecting strong cash generation and financial resilience.
Upgraded 2025 Outlook: Given its strong first-half performance, Rigel raised its full-year 2025 total revenue guidance to USD 270–USD 280 million, up from the prior range of USD 200–USD 210 million. The revised outlook includes net product sales of USD 210–USD 220 million and contract revenues of approximately USD 60 million, both higher than earlier expectations. The company anticipates maintaining positive net income for FY2025 while continuing to fund its existing and upcoming clinical programs.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Rigel Pharmaceuticals, Inc. (NASDAQ: RIGL) at the current market price of USD 30.43, as on Nov 04, 2025 at 10:05 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| RIGL Rigel Pharmaceuticals Inc |
-0.02 0.06% | 35.99 | - | - | 1.82 | 31.64 | 1.82 | -12.5068 |
| NVO Novo Nordisk A/S |
-8.435 14.31% | 50.49 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
-8.56 14.49% | 50.50 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-6.635 1.41% | 465.38 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
4.00 0.53% | 759.02 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on November 4, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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