We anticipate Rigel Pharmaceuticals RIGL to surpass expectations when it reports fourth-quarter and full-year 2023 results later this month or early next month. In the last reported quarter, the company delivered an earnings surprise of 57.14%.
Factors Driving Expectations
Rigel Pharmaceuticals’ two commercial products are Tavalisse tablets, catering to adult patients with chronic immune thrombocytopenia (“ITP”) who have had an unsatisfactory response to a previous treatment, and Rezlidhia (olutasidenib) capsules for treating relapsed or refractory acute myeloid leukemia (“AML”) in patients with an IDH1 mutation.
January saw Rigel Pharmaceuticals announce preliminary fourth-quarter 2023 total revenues of approximately $35.7 million. This includes Tavalisse net product sales of $25.7 million, up 17.4%, and Rezlidhia net product sales of $3.9 million, up 333% year over year.
Tavalisse tablet sales have been bolstered by demand growth, marked by a consistent increase in new patient starts, a trend that continued to fuel revenues in the fourth quarter.
Although Rezlidhia’s sales were initially sluggish post-launch in December 2022, the company’s efforts to boost product awareness have started yielding results, evident from improving sales trends in the fourth quarter.
Rigel Pharmaceuticals’ pivotal pipeline candidate, R2891, an investigational, potent, and selective IRAK1/4 inhibitor in a phase I study for treating patients with lower-risk myeloid dysplastic syndrome who are refractory/resistant to prior therapies, is currently enrolling, with preliminary data expected in mid-2024. The update on the conference call is anticipated to shed light on this.
In January, Rigel Pharmaceuticals announced a collaboration with CONNECT, an international collaborative network of pediatric cancer centers, to conduct a phase II study to evaluate Rezlidhia for treating newly diagnosed IDH1-mutant high-grade glioma, further enhancing the company’s growth prospects.
Earnings Surprise History
The company has a record of beating estimates in the last four quarters, averaging a four-quarter earnings surprise of 58.14%.
Rigel Pharmaceuticals, Inc. Price and EPS Surprise
Rigel Pharmaceuticals’ stock has declined 25.5% in the past year, outperforming the industry’s decrease of 4.4%.
Favorable Earnings Outlook
Our proven model predicts an earnings beat for Rigel Pharmaceuticals in the to-be-reported quarter. The company’s Earnings ESP stands at +71.43% with a Zacks Rank #3, indicating a potential positive surprise. This bodes well for the upcoming announcement.
Comparative Analysis
In comparison, other large drug/biotech players set to release their earnings include:
Moderna (MRNA) with an Earnings ESP of +37.55% and a Zacks Rank #3. Despite a 47.0% decline in its stock over the past year, Moderna has consistently surpassed earnings estimates in three of its last four quarters, averaging a four-quarter earnings surprise of 31.20%.
Sarepta Therapeutics (SRPT), which has an Earnings ESP of +877.29% and a Zacks Rank #2, with an 8% rise in stock performance over the past year. Sarepta Therapeutics has a stellar track record of beating earnings estimates in each of the last four quarters, delivering a four-quarter earnings surprise of 48.67%, on average.
Intellia Therapeutics (NTLA) boasts an Earnings ESP of +31.10% and a Zacks Rank #2. Despite a 31.3% decline in its stock over the past year, Intellia Therapeutics has exceeded earnings estimates in three of the last four quarters, averaging a four-quarter earnings surprise of 5.04%.
Investors can stay updated on upcoming earnings announcements using the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
