Rigel Pharmaceuticals, Inc. (NASDAQ: RIGL)
Rigel Pharmaceuticals is having an incredibly rough day in the market today, and for good reason. The company released results for the second of two Phase 3 studies, unfortunately missing the primary endpoint. Today, we’ll talk about what we saw from the study results, what we’re seeing from the stock, and what’s likely next for RIGL.
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RIGL Misses Primary Endpoint
As mentioned above, Rigel Pharmaceuticals made a big announcement. The announcement surrounded the results for the second FIT Phase 3 clinical trial. During the trial, the company was looking into fostamatinib. Fostamatinib is an oral spleen tyrosine kinase inhibitor. The treatment is designed for adult chronic or persistent immune thrombocytopenia.
Unfortunately, however, RIGL released data showing that they missed the primary endpoint on the study. The treatment failed to create a stable platelet response. In a statement, Raul Rodrigues, President and CEO at Rigel Pharmaceuticals, had the following to offer:
“We believe that the totality and consistency of data from the FIT Phase 3 program, which included two Phase 3 studies and one long-term extension study, strongly supports a clear treatment effect, with a sustained clinical benefit of fostamatinib… We are encouraged by these results and believe that the risk/benefit ratio for fostamatinib is positive for patients with chronic/persistent ITP, a population with a serious unmet medical need. As a result, we will continue to pursue this opportunity. Our next step is to seek feedback from the FDA.”
How The Stock Reacted To The News
As investors, we know that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Unfortunately however, the news with regard to RIGL was anything but positive. As a result, we’re seeing big declines. Currently (11:40), the stock is trading at $2.43 per share after a loss of $0.79 (24.53%).
What We Can Expect To See Ahead
Moving forward, I have a relatively mixed opinion of what we can expect to see from Rigel Pharmaceuticals. At the end of the day, the fact that the primary endpoint on the study was missed is overwhelmingly negative news. However, while this particular study didn’t work out, it’s not the only candidate that RIGL is working on. In fact, for a company at this stage in the game, they have an incredibly impressive pipeline of candidates.
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With that said, I am expecting to see more short- and mid-term volatility on the stock. However, if RIGL can get their ducks in a row with regard to other treatments in the pipeline, they should be just fine in the long run.
What Do You Think?
Where do you think RIGL is headed moving forward? Join the discussion in the comments below!
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