* Says rheumatoid arthritis drug comparable to Pfizer's
* Sees multi-billion dollar potential for drug
* Sees partnering on drug by second half of 2010
* Has enough cash until then
* Says will not pursue psoriasis drug without partner By Vidya L Nathan BANGALORE, June 25 (Reuters) - Rigel Pharmaceuticals Inc's experimental oral treatment for rheumatoid arthritis would hold its own against a rival drug in development at Pfizer and has the potential to be a multi-billion dollar business, a top company official said. "The efficacy between the two products is about the same. We have a little bit more efficacy in some areas than they do but it is basically very similar. The two products are comparable," Chief Operating Officer Raul Rodriguez told Reuters in a telephone interview.
Rigel's drug, R788, is currently being studied in mid-stage trials, the results of which are expected mid-July. Pfizer Inc's comparable drug is in late-stage studies.
Rigel's Rodriguez sees the oral compounds being developed by the two as having an edge over competitors' injections, as "people generally prefer having an oral pill than having to undergo injections."
Existing injectable treatments for the condition include Abbott Laboratories's Humira, Johnson & Johnson and Schering-Plough's Remicade, and Amgen and Wyeth's Enbrel.
"If we are able to come in before the injectable drugs during treatment, that gives us a very big market and even if we share it with Pfizer it still means that R788 has multi-billion dollar potential," Rodriguez said.
However, R788 future also rests upon the clinical-stage development company finding a licensing partner to fund the large late-stage trials required for the drug.
Rigel's compound works by blocking white-blood cells in tissues from signaling the body defenses into attacking the disease area and causing swelling and inflammation. Rodriguez said Rigel is also looking to find a partner who is also interested in the compound's potential benefits in cancer, for which it is currently being studied in mid-stage studies with funding from the National Institutes of Health.
In February, Rigel had halted partnership talks on the drug until after results of the mid-stage studies were out, so as to get a better deal.
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The South San Francisco, California-based company, which has about $134.5 million cash, had also let go of about 20 percent of its employees and cut some of its pipeline products in oncology and virology, to conserve resources.
Rodriguez said Rigel now has enough cash to last through the first half of 2010, by which time it expects to have found a partner for R788.
"Our burn would drop dramatically going forward because we do not have any clinical trials ongoing in the third quarter, fourth quarter, or early next year."
Rodriguez also said the company would not be pursue any further trials of its early-stage experimental psoriasis drug as it was no longer interested in the dermatological indication, but added that it was open to partnering on it.
Clinical trials of the remaining compounds in the company's pipeline -- an inhaled asthma product and a cancer drug -- are being funded by existing partners.
"And so that (current) cash number is sufficient to take us through the middle of next year," the COO said. (Reporting by Vidya L Nathan in Bangalore; Editing by Anthony Kurian)