H.C. Wainwright Reiterates Buy Rating on Rigel Pharmaceuticals (RIGL)

H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating and $57.00 price target on Rigel Pharmaceuticals (NASDAQ: RIGL).

The analyst commented: "This morning, Rigel announced an exclusive license and supply agreement with Kissei Pharmaceuticals (4547.T; not rated) to develop and commercialize Rezlidhia (olutasidenib) for all current and potential indications in Japan, the Republic of Korea, and Taiwan. Recall that Rezlidhia is already available in the U.S. for the treatment of relapsed or refractory (r/r) mutated isocitrate dehydrogenase-1 (mIDH1) acute myeloid leukemia (AML). Kissei will initially focus on seeking approval for Rezlidhia in Japan for r/r mIDH1 AML and will be responsible for conducting the clinical trials required by the Japanese regulatory agency, PMDA. We welcome this news as it strengthens the already strong partnership between Rigel and Kissei, building on their previous agreement to develop and commercialize Tavalisse for the treatment of chronic immune thrombocytopenia (ITP) and other potential indications in Japan, China, Taiwan, and the Republic of Korea. With an estimated 11,000 AML patients in Japan (where AML has a higher incidence than any other leukemia subtype) this agreement offers an additional opportunity to expand the drug’s commercial success in new territories. Under the terms of this new agreement, Rigel will receive a $10 million upfront cash payment, with the potential for up to an additional $152.5 million in development, regulatory, and commercial milestone payments. Of the $10.0 million received, $2.3 million will be allocated to Forma (private), leaving Rigel with $7.7 million. This allocation is due to the worldwide license agreement between Rigel and Forma, which covers the development, manufacturing, and commercialization of Rezlidhia. Under this agreement, Forma is entitled to a portion of Rigel's sublicensing revenue from olutasidenib. Rigel will also receive product transfer price payments ranging from the mid-twenty to lower-thirty percent based on tiered net sales for the exclusive supply of Rezlidhia. Importantly, Rigel will retain global rights outside these Asian countries to continue developing and commercializing Rezlidhia for all indications. The company continues to explore other ex-U.S. partnership opportunities. We reiterate our Buy rating and $57 price target."

For an analyst ratings summary and ratings history on Rigel Pharmaceuticals click here. For more ratings news on Rigel Pharmaceuticals click here.

Shares of Rigel Pharmaceuticals closed at $13.44 yesterday.

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