SOUTH SAN FRANCISCO - Rigel (NASDAQ:RIGL) Pharmaceuticals, Inc. (NASDAQ:RIGL) announced today that it will begin offering GAVRETO (pralsetinib) for certain cancer treatments in the United States starting this week. GAVRETO, a once-daily oral medication, targets RET fusion-positive metastatic non-small cell lung cancer (NSCLC) and advanced thyroid cancer in adult and pediatric patients aged 12 and over who are refractory to radioactive iodine treatment.
The U.S. Food and Drug Administration (FDA) has fully approved GAVRETO for NSCLC and granted accelerated approval for advanced thyroid cancer, with continued approval for the latter contingent on the outcomes of confirmatory trials. Rigel is currently in discussion with the FDA regarding the requirements for these trials.
GAVRETO comes in two package configurations, with the 60-capsule bottle priced at $11,144.58 and the 90-capsule bottle at $16,716.85. Rigel's patient support program, RIGEL ONECARE, offers assistance to qualifying patients, including help with insurance coverage and financial aid.
The acquisition of the U.S. commercial rights to GAVRETO was completed by Rigel from Blueprint Medicines (NASDAQ:BPMC) Corporation in February 2024. This strategic move aims to leverage Rigel's existing infrastructure to expand its hematology and oncology business.
NSCLC is the most prevalent form of lung cancer, accounting for 80-85% of cases, with RET fusions implicated in about 1-2% of these cases. Lung cancer remains the leading cause of cancer-related deaths in the U.S.
Rigel emphasizes the importance of GAVRETO as an addition to their portfolio, underscoring their readiness to ensure continuous patient access to this treatment. The company, founded in 1996 and based in South San Francisco, focuses on developing therapies for hematologic disorders and cancer.
The information in this article is based on a press release statement.
In other recent news, Rigel Pharmaceuticals has reported a robust start to the year, with record demand for its products TAVALISSE and REZLIDHIA, despite industry challenges. The company has also announced the acquisition of GAVRETO, a cancer therapy, with integration into their portfolio anticipated by July 2024. The company reported net product sales of $21.1 million and $4.9 million for TAVALISSE and REZLIDHIA respectively, in the first quarter of 2024.
Rigel ended the quarter with $49.6 million in cash, cash equivalents, and short-term investments. The company anticipates continued growth in shipments for TAVALISSE and REZLIDHIA in Q2 2024. Despite a 5% decrease in net product sales for TAVALISSE compared to the same period in 2023, CEO Raul Rodriguez expressed confidence in the growth trajectory of both TAVALISSE and REZLIDHIA.
Rigel Pharmaceuticals is also pursuing additional in-licensing deals and acquisitions to expand its Hematology and Oncology portfolio. The company's strategic focus on product expansion and market positioning in oncology is a key component of recent developments.
InvestingPro Insights
As Rigel Pharmaceuticals (NASDAQ:RIGL) launches GAVRETO for certain cancer treatments, the company's financial metrics and analyst expectations provide a broader context for evaluating its market position. Rigel's market capitalization currently stands at $168.04 million, reflecting the market's valuation of the company. While the company has reported a gross profit margin of 76.0% for the last twelve months as of Q1 2024, indicating strong profitability on its products, the overall revenue growth has slightly declined by 4.66% in the same period. Nonetheless, the quarterly revenue growth presents a more positive outlook, with a 13.29% increase in Q1 2024.
InvestingPro Tips suggest that while analysts have revised their earnings upwards for the upcoming period, they do not anticipate Rigel to be profitable this year. The lack of profitability over the last twelve months is reflected in the company's negative P/E ratio of -8.39. Additionally, Rigel does not pay a dividend, which may influence investors seeking regular income streams. For more detailed analysis and additional InvestingPro Tips, investors can visit InvestingPro, where there are 4 more tips available to help make informed decisions. To gain access to these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors may also note the company's fair value assessments. While analyst targets suggest a fair value of $2.5, InvestingPro's own fair value calculation is slightly lower at $1.12, providing a range for potential market expectations. As Rigel steps into the commercial phase with GAVRETO, these financial metrics and analyst insights will be critical for investors monitoring the company's performance amidst its strategic expansion in the oncology sector.
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